Go to the mobile version of this Web site.

Login | Contact Us | Site Map | Paid archives | Electronic edition | Subscription Questions | Extras

Overseas tax-break support similar

By Ed Sealover, Rocky Mountain News

Published September 30, 2008 at 12:05 a.m.

Text size  

Related Stories

More Elections

More stories »

Mark Udall blasted U.S. Senate race opponent Bob Schaffer for supporting tax breaks for overseas companies but failed to mention that he voted for a bill containing such breaks in 2004.

Schaffer told the Rocky last week that in addition to buying financial institutions' bad assets, he believes Congress needs to stimulate the economy with tax breaks in any bailout measure it might pass. The former congressman from Fort Collins, a Republican, specifically advocated reduction of the repatriation tax, a tax on U.S. companies that bring overseas holdings back into this country.

Udall, a Democratic congressman from Eldorado Springs, later criticized the repatriation tax cut proposal as a failed policy of the past that only benefited big companies.

But Udall voted for the American Jobs Creation Act, a 2004 economic-stimulus package. Included in that was a one-year reduction of the repatriation tax from 35 percent to 5.25 percent, a break that brought $362 billion back into the country and contributed to a 10 percent growth in U.S. business investments that year, Schaffer said.

"Udall is once again arguing with himself," Schaffer said.

In a floor speech before the final vote, Udall said the bill was flawed and filled with unnecessary provisions, according to the Congressional Record.

But he also said, "I will vote for it because it includes provisions to encourage American corporations doing business abroad to repatriate their overseas earnings for investment here at home. This has great potential to stimulate investment in new plants and equipment as well as in the research and development that support innovation, job creation and prosperity."

Udall said last week, however, that he has learned since the 2004 vote that companies used the tax breaks to buy stocks and boost their value rather than to create jobs.

"That rewards companies for sending those jobs overseas instead of creating them here at home," he said.

sealovere@RockyMountainNews.com or 303-954-5438

Comments

  • September 30, 2008

    9:30 a.m.

    Suggest removal

    T208 writes:

    This November, we are voting on whether we want to be under a socialist or democratic government. I hope everyone thinks this through. Socialism does not work. It gives no incentive for anyone to strive to do better and create what we call, "The American Dream". I know this country is mad about the majority of what's going on here, but it's apparent most Americans have never stepped out of our country to see how others societies live. I have lived all over the world. Wether you believe it or not, this is the best country in the world because of our democratic free-market society. We are programmed as American's to strive for more and more in our life time. The problem is, we're very selfish as a nation. Nothing is ever good enough. We strive for more and more, whether your a business man (the right American way) or on a government welfare program learning loopholes on how to get more money from taxpayers and still many getting paid under the table avoiding our taxes. Again, before you vote, think...do I want Socialism or a Democratic society?

  • September 30, 2008

    10:58 a.m.

    Suggest removal

    brad.lowe writes:

    Yet another occasion of Mark Udall working counter to what is best for the American people. Much like the Employee Free Choice Act, saying it was imperfect and then voting in favor of it. Udall tells us what we want to hear, but votes with his special interest buddies when it is time to cast votes.