What is the Tuchman Repatriation Project?
A plan to bring jobs to the United States.
The economy will continue to move along at a 2% growth rate according to many economists. The main impetus to growth, good paying jobs, will continue to be missing from the equation. One thing that will kick start the economy is the rebuilding of our infrastructure. This includes bridges, roads, municipal buildings and schools. The expenditures for all of these projects are local origin. The construction of a road cannot be outsourced. The funds available for these projects are already available in the form of offshore profits held by major US corporations. By assessing a federal tax rate of 5% versus the higher 35% rate, we can bring a substantial amount of money back into United States. The condition upon which the U S . government would forgo the higher tax rate would be to require the companies to take the same amount of capital as the amount they saved in taxes and invest it in any pre-approved project that would help rebuild the U S . infrastructure. Simply put, the requirement would be for the repatriating corporations to retain 70% of the cash to use in any way they see fit, while 25% would be used to purchase municipal bonds from the participating states. These municipal bonds would be owned by the repatriating companies and remain on their balance sheets as assets. So in effect, they are retaining 95% of what they are repatriating. As stated earlier, 5% would be paid to the Federal Government.
Municipal bonds remain on the balance sheet of the corporation.
It is amazing what can be accomplished by creating jobs in the country and how it manifests itself into generating taxes for the local communities as well as the federal government.
A perfect example of this is our own little company, First Choice Bank. When I joined the bank we had less than 25 employees and less than $30 million in assets. Today we have over 500 employees, $1 billion in assets and generated profits of over $25 million. Our federal and state taxes generated over $20 million and when adding employee payroll taxes, this number exceeds over $80 million. All in time span of 7 years. We see a slow and flat economic growth absent of any aggressive repatriation efforts.
The repatriation of funds from overseas in 2005 was very successful. The one major problem was once the money arrived there was little oversight to verify it was invested in our domestic economy as promised.
Government programs that mandate investments in our infrastructure do work very well; they just have to be enforced. For example, the E‐B-5 program that permits the issuance of Temporary Green Cards to foreigners who invest a minimum of $500,000 and pooled together with others agree to fund a program that creates 10 jobs sustained
Over a 5 year period. It is only after the 5 years have elapsed and it was successfully demonstrated that the jobs were ended as a direct result of this investment; that the Permanent Green Card would be issued.
As we repatriate funds from overseas, the amount earmarked for U S . investment must go into an escrow account with several select private investment banks. They will then distribute the funds to the states in the form of municipal bonds issued by those states in favor of the repatriating companies.