Repatriation of capital is the return of capital from abroad to the country of origin. To avoid paying taxes, and due to loopholes in our tax code, many American corporations do not deposit profits from overseas operations in U.S. banks. These loopholes include the no-tax rule on foreign profits if those profits remain overseas. The exact amount of our largest corporations’ foreign profits that are sitting offshore is not known, but it is in the trillions. Many of these companies claim they would repatriate these earnings if this revenue was not taxed. According to a 2024 report, multinational corporations shift about $1.42 trillion in profits offshore each year, leading to billions in lost tax revenue. The largest offshore hoards belong to consumer-technology giants like Apple and Microsoft, along with other large conglomerates like General Electric and Pfizer. Specific tax havens, such as the Cayman Islands and Bermuda, have large amounts of reported profits from U.S. companies.

Proposed Legislation: Introduction of legislation amending the Internal Revenue Code to assess a tax on corporations’ overseas profits.
Prospective Sponsor: Rep. John Garamendi (CA)