Export Subsidy Bill to Mean Job Creation, Tax Holiday says Harris Nesbitt’s Foreign Exchange Strategist
CHICAGO, June 29, 2004 – The new export subsidy bill recently passed by the U.S. House of Representatives could have a major impact for domestic companies with offshore subsidiaries, says Andrew Busch, Global Foreign Exchange Strategist for Harris Nesbitt, a Chicago-based investment and corporate bank.
As a result, some U.S. exporters are proactively reviewing, planning and some already acting, in order to obtain the maximum benefit, added John McAuliffe, Manager of U.S. FX Option Sales, Harris Nesbitt.
Mr. Busch and Mr. McAuliffe have prepared a summary that discusses the bill:
Among their observations includ e:
- They expect final legislation will be passed and signed by the President
- There is potential for a large amount of earnings to flow back from offshore into US dollars
- The benefits of the tax holiday could see taxes on repatriation of profits cut to 5.25% from 35%
A full copy of their summary is available at: Commentary.pdf.
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