Report: Ensign-led bill could ‘jump-start’ economy

Suzanne Struglinski

Wednesday, Oct. 22, 2003 | 9:44 a.m.

WASHINGTON -- Efforts to stimulate the U.S. economy by bringing foreign assets of American companies back home could generate $400 billion and more than 650,000 jobs, a new report shows.

Alen Sinai of Decision Economic, Inc. released a report Tuesday showing that a pending Senate bill would help "jump-start the U.S. business sector into strong expansionary mode not present to-date in the U.S. economic recovery." The bill would create a one-year window for American companies with assets overseas to return those assets to the United States under a dramatically reduced tax rate

Instead of being taxed the current 35 percent, companies would be taxed roughly 5.25 percent under the legislation. The capital returned to the United States would be used for expansion, new facilities, or research and development

Sen. John Ensign, R-Nev., introduced a bill in March to create the tax-break window. Ensign had five co-sponsors at the bill's introduction and has gotten 18 others since.

Senate Finance Committee Chairman Charles Grassley moved a similar bill through his committee earlier this month.

Ensign spokesman Jack Finn said Tuesday the hope is to get the bill through Congress before the end of the session.

Ensign is not targeting specific companies to bring their businesses to Nevada, but Finn said that as the economy improves nationwide, people will have more money and be able to take more vacations, which could help the tourism industry.

"It could have a very positive impact on Nevada," Finn said.

The American Council for Capital Formation Center for Policy Research sponsored the study of the bill's potential benefits.