The news show "60 Minutes" reminded us that U.S. corporations have over a trillion dollars offshore (legally) simply to avoid U.S. corporate tax.
The tax is big, the lack of investment in U.S. production is bigger yet. So how do we repatriate it?
One suggestion is to create a tax holiday for corporations, so the corporations can put it into U.S. banks, where we know no one is lending it for U.S. production. The problem is we give up the tax and the investment in our future productivity.
Presently the maximum tax on dividends is 15 percent, for the poor and the wealthy. This is the single greatest tax benefit for the rich there is.
Why not make the tax on dividends subject to regular tax? Give a deduction to corporations who pay the dividends to their shareholders. That way the trillion dollars is returned to America, and turned over to the people directly (avoiding the corporate tax entirely, and the corporation).
The owners pay the tax in proportion to their income, and use the money to invest as they chose; hopefully in America.
But if not, they will spend it in America as consumers. A trillion dollars is a lot of cure for what ails us.