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2015-0056-F [ ] Tuesday, April 05, 2016 FOIA Marker This is not a textual record. This FOIA Marker indicates that material has been removed during FOIA processing by George W. Bush Presidential Library staff. Council of Economic Advisers Rosen, Harvey - - Subject Files Location or NARA Number: FRC ID: OA Number: Stack: Row: Sect Shelf: Pos.: Hollinger ID: W 30 13 10 2 5919 18854 4849 5009 Folder Title: Dividend Repatriation Proposal Withdrawn/Redacted Material The George W. Bush Library DOCUMENT FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) NO. 001 Email comments on HIA draft - To: Brian Reardon - From: 1 08/21/2003 P5; Philip L. Swagel 002 Email RE: Wealth Effect - To: Harvey S. Rosen - From: Brian 2 08/01/2003 P5; Reardon 003 Email FW: short report on CEA (Council of Economic 2 07/30/2003 P5; Advisors) meeting - To: Harvey S. Rosen - From: Pam Olson 004 Memorandum The Economics of the Proposaed tax Holiday - To: N. 4 07/17/2003 P5; Gregory Mankiw - From: Harvey S. Rosen, et al 005 Memorandum The Economics of the Proposaed Tax Holiday - To: N. 4 07/17/2003 P5; Gregory Mankiw - From: Harvey S. Rosen, et al COLLECTION TITLE: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: 5919 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. 2015-0056-F Page 1 of 3 This document was prepared on Wednesday, April 06, 2016 Withdrawn/Redacted Material The George W. Bush Library DOCUMENT FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) NO. 006 Email repatriation memo - To: Beth ann Wilson - From: Kristin 1 07/14/2003 P5; J. Forbes 007 Email RE: repatriation stuff - To: Harvey S. Rosen - From: 1 07/15/2003 P5; James Mackie 008 Handwritten Note Temporary Repatriation 1 N.D. P5; 009 Memorandum [Repatriation Proposal] - To: Pam Olson - From: Harvey 2 06/12/2003 P5; S. Rosen, et al 010 Email RE: Repatriation Proposal Memo - To: Cesar Conda, et 2 06/12/2003 P5; al - From: Keith Hennessey COLLECTION TITLE: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: 5919 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. 2015-0056-F Page 2 of 3 This document was prepared on Wednesday, April 06, 2016 Withdrawn/Redacted Material The George W. Bush Library DOCUMENT FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) NO. 011 Email RE: Reducing tax on domestic reinvestment of foreign 4 06/11/2003 P5; earnings - To: Harvey S. Rosen, et al - From: Nicholas G. Mankiw 012 Email RE: Temporary repatriation proposal - To: Nicholas G. 2 06/10/2003 P5; Mankiw - From: Randall S. Kroszner 013 Email RE: Foreign dividend repatriation proposal - To: Nicholas 4 06/09/2003 P5; G. Mankiw - From: Pam Olson COLLECTION TITLE: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: 5919 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. 2015-0056-F Page 3 of 3 This document was prepared on Wednesday, April 06, 2016 Message Page 1 of 1 Rosen, Harvey S. From: Viard, Alan D. Sent: Thursday, October 02, 2003 9:38 AM To: Mankiw, Nicholas G.; Rosen, Harvey S. Subject: BNA's coverage of repatriation holiday Controversy on Repatriation However, the repatriation provision was vigorously debated, with an amendment from Sen. John Breaux (D-La.) that would have tightened language requiring the repatriated funds to be reinvested in the United States failing by a narrow margin. As passed by the committee, the reduced 5.25 percent rate applies only to repatriations in excess of the taxpayer's average repatriation level over three of the five most recent taxable years, throwing out the highest and lowest of those five years. In order to qualify for the reduced rate, dividends must be described in a domestic reinvestment plan approved by the taxpayer's senior management and board of directors, and used for worker hiring and training, infrastructure, research and development, and financial stabilization for the purposes of job retention or creation. Breaux protested that the phrase "financial stabilization" leaves open a wide window for companies to use the repatriated income for stock repurchase and other financial bolstering activities. He proposed an amendment that would have required the funds be used only for increasing the number of workers, capital expenditures, research and development, and contributions to pension trust funds for workers. The amendment was defeated by an 11-10 vote. Treasury Assistant Secretary for Tax Policy Pamela Olson, who was present at the markup, said the administration remains opposed to the idea of a one-year lower rate for repatriated income. "The companies with income overseas knew what the tax rules were when they made their investments," Olson said. "This would give them a tax holiday from their decisions, and that is unfair to other taxpayers who pay taxes." Olson said Treasury remains skeptical about the amount of income that would return to the United States, which some business stakeholders have predicted would be between $200 billion and $300 billion. "We feel it's going to undermine the belief of American taxpayers in the fairness of the system," she said. 10/2/2003 Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email comments on HIA draft - To: Brian Reardon - From: Philip L. Swagel 1 08/21/2003 P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: Wealth Effect - To: Harvey S. Rosen - From: Brian Reardon 2 08/01/2003 P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRAJ b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS JPMorgan Economic & Policy Research J.P. Morgan Securities Inc. May 2, 2003 Special report Introducing the Homeland Investment Act A tax change is proposed that temporarily reduces obstacles to repatriating accumulated foreign earnings of US corporations Legislation to produce results; repatriation estimated at $300 billion Survey suggests that firms would use funds for varied purposes; shoring up corporate finances is the top priority Estimated increase in business spending to lift GDP growth 0.5% Budget impact is negligible Introduction Amid the current flurry of activity on US tax policy, it is easy to neglect the Homeland Investment Act. This tax proposal, which has bipartisan support, would remove many of the tax obstacles that inhibit repatriation of foreign earn- ings by US corporations. The intention of this legislation is to make it less costly to repatriate earnings that might be used for investment spending and hiring in the United States. However, there is little analysis available that bears on the likely impact of this legislation. To fill this gap, this special report draws on existing company infor- mation and provides new survey material to give rough guidance as to the poten- tial effects of the Homeland Investment Act. The analysis suggests that there is a large pool of reinvested foreign earnings that would be repatriated if this legisla- tion were passed. JPMorgan estimates that the gross flow that would result from the passage of the pending legislation is roughly $300 billion. This number is more than twice the estimate of the Joint Committee on Taxation made in 2001. A survey of firms suggests that this money would be put to varied use... Shoring up balance sheets would be a central priority. JPMorgan estimates suggest that the Anne Swope (1-212) 834-7566 legislation would lead to a roughly 3% reduction in nonfinancial corporate debt. [email protected] An important part of the funds would be used to increase business activity. Esti- JPMorgan Chase Bank mates suggest a 2-3% increase in capital spending over two years, during which Bruce Kasman the GDP level would likely be boosted by roughly one-half of a percentage point. (1-212) 834-5515 The impact of the legislation on the Federal Budget is likely to be negligible. [email protected] JPMorgan Chase Bank Introducing the Homeland Investment Act Robert Mellman (1-212) 834-5517 Legislation was recently introduced in both the House (H.R.767) and Senate [email protected] (S.596) to temporarily change the tax treatment of US subsidiaries foreign earn- JPMorgan Chase Bank www.morganmarketscom May 2, 2003 Economic & Policy Research IPMorgan Introducing the Homeland Investment Act JPMorgan Chase Bank, New York Page 2 Anne Swope (1-212) 834-7566 [email protected] ings. These bills, the Homeland Investment Act of 2003 and A stylized example of tax law proposal Invest in the USA Act of 2003, would temporarily reduce the US tax rate on foreign subsidiary earnings that are dis- in this example, Acme International earns $100 abroad and Days tributed to the United States parent company. Although the $10 in foreign taxes No US taxes are part because earnings are not legislation has been proposed separately from the Bush repatriated administrations 'jobs and growth" stimulus package, it is now being discussed as a possible element of this plan. Under current law, If the profits were repatriated the firm would also owe $35 in US taxes and $450 in additional foreign for distributed The current form of the proposed legislation reduces the tax darings less a $14.50 tax credit to offset the foreign corporate income rate to 5.25% on distributions in excess of a corporation's tax and withholding tax paid The additional tax cost of repairiating the "normal" annual distribution, and would be effective for $90 is $25 distributions made in either 2003 or 2004, depending on when the legislation becomes law. Under the proposed Law. the US corporate tax would be lowered by from $35 to $5.25 the foreign tax credit would also be reduced by The Senate Bill differs from the House version in requiring 85% to $2.18 and Acme would still have to pay the 34.50 foreign with US corporations to provide a domestic reinvestment plan. holding tax on distributions The tax cost to the from of repatriating the This plan requires firms to describe how repatriated income $90 in earnings to the United States B lowered by more than two thirds will be reinvested in the United States. The Senate bill an- from $215 to $7.57 ticipates that an electing corporations reinvestment plan would provide for use of the distributed cash as a source for Example funding worker hiring and training, infrastructure, research Foreign Taxable Income $100 and development, capital investments and/or providing fi- 10% Foreign Corporate Tax 410 nancial stability (of the corporation) for purposes of job Foreign Net Earnings $90 retention or creation. Tax cost of repatriating foreign earnings If the Homeland Investment Act becomes law on or before Under Current Law September 2, 2003, the temporary reduced tax rate will only us Corporate Tex at 35% $35 apply to qualifying distributions made on or prior to De- Foreign Tax Credit $14.50 cember 31, 2003 for all calendar year taxpayers. This im- Fineision Withholding Tax $4.50 plies that any resulting capital flows would occur in a very Additional Tax Burden $25.00 short period of time. If the Act becomes law after Septem- ber 2, 2003, the reduced tax rate would apply to distribu- tions made during 2004 for calendar year taxpayers. Under Proposed Law US Corporate Tax at 5.25% $5.25 Motivation for changing the law Fioleign Tax Credit $2.18 Unlike most other industrial countries, current US tax law Foreign Witholding The $4.50 provides multinational firms with strong incentives to keep Additional Tax Burden $7.57 earnings from foreign operations outside the United States, even when efficiency considerations would argue that the US corporations: profits earned abroad funds be used within the United States. billions of dollars percent Under international tax principles, primary jurisdiction to 210 28 Profits earned abroad tax income is given to the country where the foreign subsid- 180 iaries operate. The accumulated earnings of a US 24 150 corporations foreign subsidiaries are generally not subject to US corporate income taxation until the earnings are actu- 120 20 ally distributed to the corporate parent as a dividendAs a 90 16 general principle, US tax on repatriated income is imposed 60 Share of total profits to bring the total corporate tax rate to 35%. In countries in 30 12 which tax rates are below 35%, an additional US tax gener- 85 87 89 91 93 95 97 99 01 May 2, 2003 Economic & Policy Research PMorgan Introducing the Homeland Investment Act JPMorgan Chase Bank, New York Page 3 Bruce Kasman (1-212) 834-5515 [email protected] ally is paid when earnings are repatriated. Thus, foreign Foreign undistributed earnings by credit rating investments financed with foreign earnings of US multina- share of tionals typically have been more attractive than returns on undistributed earnings domestic investments financed with foreign earnings (after AAA 22.9 additional taxes are paid to repatriate the earnings). To be AA 9.9 sure, US tax rules are far more complex than this short de- scription suggests. Often they operate to create disincen- AA- 11.5 tives to repatriate foreign earnings even when tax rates A+ 13.6 abroad are high. A 10.3 A- 9.4 In lowering the tax rate to 5.25%, the cost of repatriating BBB+ 3.3 earnings is significantly reduced. Firms can repatriate funds BBB 10.3 at a lower tax rate and may receive a partial tax credit for Lower 8.8 taxes paid abroad. A stylized example presented in the ac- companying box (previous page) makes this point clear. In Foreign undistributed earnings by sector the example, costs of repatriating earnings are cut by more share of than two-thirds. undistributed earnings Manufacturing 39.7 Many firms have large pools of accumulated earnings from High tech and telecom 17.7 foreign operations but lack promising investment opportu- nities for use of the funds abroad. In particular, tax laws Pharmaceuticals and health care 27.0 make it difficult to structure direct investments from one Consumer 12.2 subsidiary to another. And while the US parent can gener- Energy 9.6 ally borrow as an alternative to repatriating funds, the cur- Finance and insurance 6.5 rent environment is one in which firms have strong incen- Other 5.0 tives to deleverage. Risk considerations should also pro- Note: Both tables based on the sample of 237 S&P 500 corporations that report reinvested mote repatriation. Absent a US tax bite, the risk of political foreign earnings. change or shifting foreign tax regimes create disincentives The Joint Committee on Taxation analyzed a proposal simi- for holding assets in many parts of the world. lar to the current one in 2001. It estimated that repatriated earnings would rise by $135 billion in the first year after The primary motivation of the change in the law is to allow legislation is effective. The estimated revenue impact was firms to repatriate these foreign earnings to promote long- modest. A small positive $4.1 billion gain in the first year term growth. The hope is that some of these funds would be was estimated to be temporary. Over ten years the legisla- used in ways that boost US investment and hiring. That a tion was estimated to reduce revenues by a net $3.9 billion. reduction in the tax rate on repatriating earnings might have The Joint Committee has provided little detail in how it ar- little if any net cost to the US Treasury is also appealing. rived at these estimates. There would be a net loss in revenues from firms that planned to repatriate earnings in the future and would now JPMorgan's assessment of the Homeland Investment Act bring these funds home at a lower tax rate. However, firms begins with an estimate of the size of the accumulated for- that keep virtually all their foreign earnings abroad to avoid additional taxes under current law would have incentive to eign subsidiary earnings that would be available for repa- triation to the United States. In the audited financial state- repatriate earnings currently under the proposal. ments of many S&P 500 corporations, the cumulative amounts of foreign subsidiary earnings that are permanently Foreign subsidiary earnings: a large pool exists or indefinitely réinvested outside the US hereafter, rein- Although the motivation of the legislation is clear, there is vested foreign earnings) are disclosed. little information available to assess the likely size of in- flows that will be generated under the new law and its mac- These figures generally appear in the tax footnote to audited roeconomic effects. financial statements. They are available because, under May 2, 2003 Economic & Policy Research PMorgan Introducing the Homeland Investment Act PMorgan Chase Bank, New York Page 4 Anne Swope (1-212) 834-7566 [email protected] GAAP, all corporations that consider all or some of their $500 billion in estimated retained foreign earnings foreign subsidiary earnings as permanently or indefinitely reinvested outside the US-and therefore do not accrue a Financial statements show $406 billion in accumulated foreign deferred tax liability-are required to disclose the amount subsidiary earnings for the S&P 500: This figures likely underesti- in their audited financial statements. Financial statements mates the size of the total pool of foreign camings that could indicate that the reinvested foreign earnings of the S&P 500 potentially be repairiated corporations that could potentially be repatriated following passage of the Homeland Investment Act is $406 billion. The SEP 500ms a subset of the entire corporate sector S&P 500 operating eamings has recently averaged about 60% of over- Most of these earnings are held by companies with high all after tax earnings Its share of foreign eamings is likely larger, credit ratings (tables, page 3). Based on S&P ratings, more atthough no official breakdown is available than three fourths of the earnings are held by companies that are rated A or higher Sectorally, manufacturing and The aggregate réinvested foreign earnings of corporations in the pharmaceutical companies account for the largest concen- S&P 500 includes reinvested foreign earnings of only 237 corpo- tration of accumulated foreign earnings, more than one-half rations The remaining 263 corporations did not overtly disclose of earnings held abroad. reinvested foreign earnings life some cases the lax effects but not the total amount of formen subsidiary earnings are disclosed There are good reasons to think that this $406 billion figure For RUE calculation these companies BIRE treated as if they have underestimates the total pool of earnings that would be eli- no reimwested foreign earnings gible for repatriation (box, page 4). Indeed, this view is confirmed by an alternative estimate based on IRS data for There are foreign subsidiary earnings that have not been repa- a larger sample of firms. Taken together, the total pool of triated Dut also not been treated 2015 permanently reinvested reinvested foreign earnings eligible for repatriation is esti- These namings could also be repatriated H the bill becomes Haw mated at about $500 billion. An atternative exercise employs IRS data for the 7500 largest Survey points to large-scale repatriation controlled foreign corporations for 1998 and points E accumu- lated foreign subsidiary earnings in 2002 of close to $500 billion The existence of a large pool of reinvested foreign earnings This level appears consistent with a scaled up estimate from the provides little insight as to the likely size of repatriated smaller S&P sample funds under the tax plan. In order to estimate the likely ef- fect of the legislation, an informal survey of large firms was Survey results, repatriation of relnvested foreign earnings conducted. The survey sampled tax and treasury depart- percent of reinvested foreign earnings ments of 28 firms. Their reinvested foreign earnings repre- sent about one-quarter of the aggregate $406 billion mea- 60 sured in the S&P 500 sample. The results of the survey 50 highlight the following: 40 A strong incentive to repatriate. Respondents representing 30 slightly over half of the sample-both as a share of the 20 number of respondents and as a share of reinvested foreign 10 earnings-indicate that substantially all of their earnings 0 would be repatriated. Most other companies indicated that Substantially all Some None some of their earnings would be repatriated. Only two re- spondents, accounting for about 8.7% of reinvested foreign Estimate of repatriated earnings earnings of the sample, did not plan to repatriate foreign billions of dollars earnings to the United States. From Firms From Firms Repatriating Repatriating Dollars Cash flow and repatriation. Adequate liquidity appears to Substantially All Some Repatriated be an important consideration for firms willingness to repa- Share of sample 50.3% 41.2% triate. Firms with large cash balances globally appear more Percent repatriated: committed to repatriating all their reinvested foreign earn- Higher estimate 100% 60% $375 Lower estimate 80% 30% $265 1. Corporations may change their reinvestment strategies, however, at which time Note: Estimates are based on a JPMorgan survey of 28 firms accounting for roughly 25% of deferred taxes may be required to be accrued all accumulated earnings by the S&P 500 sample of very large firms. May 2, 2003 Economic & Policy Research PMorgan Introducing the Homeland Investment Act JPMorgan Chase Bank, New York Page 5 Bruce Kasman (1-212) 834-5515 [email protected] ings. Corporations that do not have sufficient cash would S&P sample and survey group have to borrow the cash at the foreign subsidiary level, liq- $ billion uidate operating assets, or distribute property, all of which Global Lesser of Reinvested have collateral consequences and make the decision signifi- Group Reinvested Foreign Cash & Cash Foreign Earnings or cantly more complex. Liquidity is also significant as there Earnings Equivalents Global Cash and Equiv. would be cash taxes due on the distributed earnings. In ad- dition to US taxes, most countries impose a withholding tax S&P 500 sample 407 374 193 when earnings are distributed. Survey Group 102 76 59 The results of the survey point to a substantial flow of repa- Note: The S&P sample represents the 237 corporations in the S&P 500 that triated foreign earnings (table, page 4). The estimates range disclose reinvested foreign earnings. The survey group represents the 28 corporations sampled by JPMorgan. The amount of global cash and cash from $265- 375 billion. equivalents for each company is the amount reflected on each companys audited financial statements The aggregation of corporations The possibility that the survey sample is biased towards using the lesser of their reported reinvested foreign earnings or global cash is reported in the last column. companies with high levels of liquidity- and therefore a greater proclivity to repatriate earnings- was also examined (top table, page 5). In the aggregate, companies in the sur- vey sample do not appear to have a larger cash position relative to those in the broader S&P 500 sample. This find- Survey results: uses of repatriated funds ing holds when the data are aggregated such that repatriated survey of 28 firms; respondents could mention more than one use flows are no larger than a corporation's available cash posi- Percent of tion. Number respondents Pay down outstanding debt 13 46 In all, $300 billion looks to be a reasonably conservative Finance capital spending 11 39 estimate of the magnitude of foreign earnings that could be Fund R&D, venture capital, or acquisitions 11 39 repatriated under the proposed legislation. This estimate is Buy back stock 5 18 more than twice as large as that produced by the Joint Com- Use cash for working capital 3 11 mittee on Taxation. Might pay dividend (if double taxation ends) 3 1.1 Fund underfunded pension fund 1 4 A modest boost to growth and deleveraging The ultimate intent of the Homeland Investment Act is to provide a boost to US macroeconomic performance. In con- sidering the possible benefits of repatriating $300 billion in foreign earnings, once again the survey provides guidance cash or is used for stock buy-backs and shoring up pension (bottom table, page 5). Most corporations point to shoring funds. up corporate finances— buying back debt, increasing levels of liquid assets, rebuilding pension funds or even retiring Under these assumptions, $150 billion of corporate debt equity- as a key priority for the use of these funds. How- would be paid down, equivalent to about 3% of total nonfi- ever, a substantial number of corporations also indicate that nancial corporate debt. For many firms repatriating funds, a portion of the funds will be used to finance activity: capi- the percentage reduction in debt would be much greater. tal spending, research and development, and the like. The share allocated to new expenditures amounts to about There are no hard numbers on how the money would be al- $50 billion per year in new spending. At this magnitude, located among these varied purposes. As a rough translation GDP would likely be boosted by about one half a percent- of the survey results, assume that 50% of the $300 billion is age point. The biggest benefits would likely come in spend- used for debt repayment and 35% is used for spending- on ing on equipment and software and new plant. The boost to research and development or capital expenditure- spread the total national level of capital spending would be 2-3% out over a two-year period. The remaining 15% remains in in each of the two years. May 2, 2003 Economic & Policy Research PMorgan Introducing the Homeland Investment Act JPMorgan Chase Bank, New York Page 6 Anne Swope (1-212) 834-7566 [email protected] Budget impact is expected to be small tial offset to the $10 billion to $15 billion gain. Most likely, The effects of the proposed change in the tax law on the the past trend of earnings accumulating abroad would con- federal budget are likely to be relatively modest: positive in tinue to prevail, and this partial offset would be minimal, the short run and slightly positive in the longer run as well. Based on the estimate of the repatriated earnings, cash tax Close to $100 billion shift to dollar assets payments of roughly $10-15 billion as a direct result of the Regarding the currency impact of the tax change, the key legislation would accrue to the Treasury in the first year. issue is the extent of the shift from nondollar to dollar assets This assumes an effective tax rate of 3.5-5.0%, after adjust- that takes place. Anecdotal evidence gained from talking to ing for foreign tax credits. US corporations suggest that a large portion of foreign earnings held abroad are held in US dollars. Although no To the extent that some of the reinvested foreign earnings hard information is available, a reasonable estimate places would have been distributed in the foreseeable future and the dollar share of reinvested foreign earnings at between taxed at the statutory rate of 35% absent the proposed legis- one-half and three-quarters. As a result, the repatriation of lation, the present value of the foregone taxes on these earn- $300 billion in foreign earnings is likely to produce a one- ings (difference between 35% and 5.25%) would be a par- time currency shift of around $100 billion. Copyright 2003 J.P. Morgan Chase & Co. All rights reserved. JPMorgan is the marketing name for J.P. Morgan Chase & Co., and its subsidiaries and affiliates worldwide J.P. Morgan Securities Inc. is a member of NYSE and SIPC. JPMorgan Chase Bank is authorised by the FSA and a member of FDIC. J.P. Morgan Futures Inc. is a member of the NFA. J.P. Morgan Securities Ltd. and J.P. 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Clients should contact analysts at and execute transactions through a JPMorgan entity in their home jurisdiction unless governing law permits otherwise This report should not be distributed to others or replicated in any form without prior consent of JP Morgan. This report has been issued in the U.K. only to persons of a kind described in Article 19 (5), 38, 47 and 49 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (all such persons being referred to as "relevant persons"). This document must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is only available to relevant persons and will be engaged in only with relevant persons. In other European Economic Area countries; the report has been issued to persons regarded as professional investors (or equivalent) in their home jurisdiction. Viard 7/31/03 JC7 revenue estimate - names $ J.bin frit year - lises $45 one 10- yr pend Thomas bill - - you hane t maintain prom levely dividend repatria tens) and le you lose The here fits of The holding - only some of The davider earney from abroad ("permanently "innes abwad) areligible. Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email FW: short report on CEA (Council of Economic Advisors) meeting - To: 2 07/30/2003 P5; Harvey S. Rosen - From: Pam Olson This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Risk Management Advisory Bank of America. July 11, 2003 Alert: Homeland Investment Act An Update The Homeland Investment Act (HIA) is proposed legislation that will provide US Arnold Miyamoto corporations with a window of six months to one year to repatriate offshore earnings at +1 212 847 6218 a significantly reduced tax rate. [email protected] We assign a greater than 50% probability to the proposed HIA legislation being enacted within this Congressional session. Martin Gonzalez If enacted in its current form, we expect more than $400 billion to be repatriated in +1 212 583 8192 [email protected] 2004. Given that Congress is not expected to focus on the HIA until after the Medicare issue is addressed, corporations still have an opportunity to join the lobbying effort to ensure their particular tax situation is considered. Because the repatriation window is narrow and given the large amount of time required to properly structure transactions to realize the maximum benefit (and to structure the associated liability-management transactions), we encourage clients who have not already done so to initiate debt structuring preparations with our capital markets desk as soon as possible. We remain of the view that the impact on the USD will be both direct and indirect. With the recent decline in the US dollar, we think it is prudent to protect the shareholder value of non-USD assets, especially those that may be affected by this act. Background The Homeland Investment Act proposes to amend the 1986 Internal Revenue Code with the objective of encouraging the re-investment of foreign earnings into the United States. The bill proposes to reduce the applied tax rate on excess qualified foreign distributions from 35% to 5.25% for a period of one year. Excess qualified foreign distribution is the excess of: Dividends received by the taxpayer during the taxable year from corporations that are controlled foreign corporations in which the taxpayer is a United States shareholder on the date such dividends are paid, over the base dividend amount. The base dividend amount means an amount not less than the average amount of dividends received during the fixed base period from corporations that are controlled foreign corporations in which the taxpayer is a United States shareholder on the date such dividends are paid. The proposed effective date is the first taxable year of the electing taxpayer ending 120 days after the date of enactment. Bank of America Alert: Homeland Investment Act of 2003 If passed, we believe that dividend repatriation will be in excess of $400 billion. The influx of capital into the US would be extremely beneficial across both the public and private sectors. Multi-national corporations (MNCs) participating in a recent survey have identified the following as probable areas to which they would allocate any repatriated HIA capital: Working capital, inventory, plant & equipment (30%) Reduction of debt (30%) Stock repurchase (10%) Contributions to under-funded pensions (5%) Portfolio investments (10%) M&A and other (15%) We remain of the view that the impact of this act on the USD will be both direct and indirect. The direct impact will be the spot exchange required to convert non-USD cash into USD. Relative to the size of the market, the flows and timing will be both small and spread out. In addition, a significant percentage of the offshore accounts are already denominated in US dollars. Nonetheless, even if only 20-40% of $400 billion or more is converted, this would still be a large number. Indirectly, repatriated HIA. flows represent a significant amount of money relative to the trade balance. As seen above, HIA repatriated funds will be used to pay down debt and buy back stock, and the residual flows will at least temporarily be invested in short-term, high-quality securities. On May 15, the Senate passed (75-25) its version of the HIA bill (S. 596). S 596 was included in the Senate's proposed tax and growth package. Despite strong bipartisan support, the bill was ultimately axed in the final compromise with the Administration, in which a decision was reached to more narrowly focus this year's tax bill. Legislative Strategy Take Away. Given that Congress is not expected to focus on the HIA until after the Medicare issue is addressed, corporations still have an opportunity to join the lobbying effort to ensure their particular tax situation is considered. Note that a coalition of thirty companies (primarily from the technology and pharmaceutical industries) are the principal sponsors of this legislation. We believe that a broader corporate representation would greatly improve probability of passage. Should you wish to join the coalition or find out more about it, please contact us. The HIA is expected to be wrapped into the International Tax Bill (ITB). The ITB has yet to be introduced, but this is expected to happen in the next month. Congress' first priority is to address the Medicare issue. We expect this to be resolved and signed by the Executive branch by month- end. Once Medicare has been addressed, we expect the ITB to be the next major issue on Washington's agenda. A key ITB concern is the resolution of FSC/ETI (Foreign Sales Corps and the Extraterritorial Income Act of 2000). FSC/ETI's are US business vehicles that the WTO has ruled are illegal. In its November ruling, the WTO granted the EU the ability to levy $4 billion in retaliatory tariffs on US exporters. Resolving the FSC/ETI will be a central goal of the International Tax Bill. The next step will be to introduce the ITB (with the HIA provision included) and get it passed before the summer recess. For reference, Washington adjournment is in the October-November timeframe. We expect end of August to early September to be a critical period for this legislation. Ideally, the ITB will be passed this year, making dividend repatriation a 2004 event. Several Washington lobbyists have indicated that Chairman Thomas' HIA proposal to be included in the ITB will have two key modifications from the original bill (H.R. 767): Arnold Miyamoto +1 212 847 6218 Martin Gonzalez +1 212 583 8192 2 Bank of America Alert: Homeland Investment Act of 2003 An increase in the tax rates from 5.25% to 7%. (Note: the Senate version still calls for 5.25%.) A shortened repatriation window from twelve to six months. Washington recognizes the importance and positive economic implications of a large influx of capital. Thus, shortening the repatriation window is consistent with having a quick impact. Offsetting the "benefit" to a shortened window are 1) foreign tax credit sign-off (if needed); and 2) having a reasonably long enough period that ensures that all companies will have the time needed to execute an appropriate strategy. We do not expect the window to be lengthened, and we believe that it is extremely unlikely that the proposed short-term tax relief will be changed to permanent relief. In addition to the probable allocations (above), we are also aware of companies conceptually discussing a one-time special dividend to shareholders from the repatriated HIA cash net of immediate needs. Although there are risks to this legislation, we still assign a greater than 50% probability of the HIA ultimately being enacted. Debt Strategy Take Away. Given the narrow window in which corporations will be able to repatriate earnings- and timing needed to properly structure transactions to maximize the tax benefit and to structure the associated asset-liability management transactions-we encourage clients who have not already done so to initiate debt structuring preparations to take advantage of the HIA with our capital markets desk as soon as possible. The passage of the legislation presents corporations that have significant "trapped" offshore earnings with three potential capital markets structuring opportunities: 1. Maximizing value of HIA benefit via additional offshore issuance. Issue proceeds will allow clients with offshore assets invested in illiquid assets to take full advantage of tax holiday that they might not otherwise have been able to. Similarly, even clients with offshore assets invested in liquid assets could maximize the benefit of the tax holiday by further levering their subsidiaries. 2. Managing net investment exposure via additional offshore issuance. Subject to local limitations regarding capitalization structure and the historical earnings and profits account (E&P), companies can reduce their consolidated net investment risk by issuing local currency denominated debt. In addition to maximizing the tax holiday afforded by the HIA, this structural move reduces overall balance sheet risk to the shareholders from exchange rate fluctuations. 3. Structuring onshore liability management solutions with repatriated earnings. Naturally, liability management solutions should be considered in conjunction with the expected wave of repatriated funds. FX Strategy Take Away. We remain of the view that the impact on the USD will be both direct and indirect. Given the recent decline in the US dollar, we think it is prudent to protect the shareholder value of non-USD assets that are either in the form of cash or illiquid assets. For specific hedging strategies, please contact your foreign exchange sales advisor. For more information, log on to bofa.com/capitalmarkets The information contained in this publication is for information purposes only. The information contained herein has been obtained or derived from public sources believed by us to be reliable, but we do not represent that it is accurate or complete and it should not be relied upon as such. Any opinions or predictions constitute our judgement as of the date of this publication and are subject to change without notice. The information contained herein is not meant to be, nor shall it be construed as, an offer by Bank of America Corporation or any of its affiliates (together, the "Bank") to offer to buy or sell any currency or financial product. The Bank may from time to time hold positions in, and may effect transactions in, the currencies and securities mentioned herein. Arnold Miyamoto +1 212 847 6218 Martin Gonzalez +1 212 583 8192 3 Alan D. Viard 07/22/2003 09:15:29 AM Record Type: Record To: See the distribution list at the bottom of this message CC: Subject: Pam Olson criticized repatriation holiday at July 15 Senate Finance hearing According to the July 21 Tax Notes: Olson did her best to puncture the repatriation bubble. "We don't think that a tax holiday like this is the best way to address the issues in our international tax rules. It would be far better to do something on a long-term, permanent basis that would improve the competitiveness regime," she said...Olson said temporary fixes are not on the administration's radar. "We do think that it would be worthwhile taking a long-term look at the structure of the tax code to see whether or not a worldwide system continues to make sense, or whether we'd be better off with a territorial system," she said. "What we don't think would be good policy would be to just do it on a one-year basis," Olson said. "We do think that if the committee considers and moves forward with modifications on the subpart F rules, and modifications on the foreign tax credit rules, we will go some distance to address this issue." Message Sent To: Nicholas G. Mankiw/CEA/EOP@EOP Harvey S. Rosen/CEA/EOP@EOP Kristin J. Forbes/CEA/EOP@EOP Andrew A. Samwick/CEA/EOP@EOF Julia Stahl/CEA/EOP@EOP Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Memorandum The Economics of the Proposaed tax Holiday - To: N. Gregory Mankiw - 4 07/17/2003 P5; From: Harvey S. Rosen, et al This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS [email protected] 07/17/2003 04:32:06 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: Subject: FW: Repatriation Holiday A better answer came in as soon as I sent you my reply. Original Message From: Randolph, William Sent: Thursday, July 17, 2003 4:22 PM To: Olson, Pam Cc: Angus, Barbara Subject: RE: Repatriation Holiday Harvey, Whether passive or active, the income can be shielded by foreign tax credits, but companies are most likely to be able to shield it with excess foreign tax credits from other sources if it is active. I think that confusion may arise because many companies have accumulated substantial active earnings abroad by reinvesting in passive financial assets. Earnings on the financial assets would be considered to be passive and, as such, would be subject to U.S. tax as they are accrued and would be treated as passive income under the foreign tax credit rules. However, the repatriation holiday proposal is about the companies' principle in those financial assets. The principle represents accumulated active earnings that have not yet been repatriated and subject to U.S. income tax. If the companies sell the financial assets and pay dividends (the liquidated principle) back to the U.S. parent, the dividends are subject to U.S. tax and may be shielded by foreign tax credits as active income. Accumulated foreign earnings are not necessarily reinvested in passive assets, but passive assets are the most likely assets to be liquidated. Note also that the holiday proposal does not require foreign assets to actually be liquidated, but I will not go into the mechanism unless you are interested. Bill Original Message From: Olson, Pam Sent: Thursday, July 17, 2003 3:40 PM To: Angus, Barbara; Randolph, William Subject: FW: Repatriation Holiday Original Message From: [email protected] [mailto:[email protected]] Sent: Thursday, July 17, 2003 3:25 PM To: [email protected] Subject: Re: Repatriation Holiday hi pam. can you help me out with this query? thanks. --harvey Forwarded by Harvey S. Rosen/CEA/EOP on 07/17/2003 03:25 PM Brian Reardon 07/17/2003 02:24:21 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: bcc: Subject: Re: Repatriation Holiday (Document link: Harvey S. Rosen) hey harvey thanks for this Question: You mention excess foreign tax credits several times, but my impression is the money that would be repatriated doesn't qualify for these, since its likely passive income from a low-tax regime. Is that not the case. Harvey S. Rosen 07/17/2003 01:32:43 PM Record Type: Record To: Brian Reardon/OPD/EOP@EOP CC: Subject: Repatriation Holiday brian, here's my shot at the proposed tax holiday for repatriated foreign earnings. i hope that you find it convincing! best, harvey (See attached file: temporary repatriation 7.17hr2.doc) Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Memorandum The Economics of the Proposaed Tax Holiday - To: N. Gregory Mankiw 4 07/17/2003 P5; From: Harvey S. Rosen, et al This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information I(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS [email protected] 07/17/2003 04:30:13 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: Subject: RE: Repatriation Holiday I'll get you a more complete answer than I can give, but, for starters, the multiplicity of foreign tax credit baskets (i.e., it's more than the passive basket) results in excess FTCs for many companies, as does the interest allocation rule, which can artificially reduce foreign source income, and as does the overall foreign loss rule. I don't expect much of the income to be in the passive basket. The arbitrary reductions in foreign source income for purposes of calculating the FTC and multiple limitations on the FTC all can result in companies being unable to use all their FTCs currently or even within the extended period allowed under the carryforward rules. As I recall from Commerce Department statistics, the lion's share of U.S. MNC foreign direct investment is in the developed world, particularly Europe, where with the exception of Ireland (and possibly Switzerland), the tax rates are not significantly different from those in the U.S. I believe the companies most interested in the repatriation proposal have significant operations in Ireland, Singapore, and Hong Kong where the tax rates are relatively low. Original Message From: [email protected] [mailto:[email protected] Sent: Thursday, July 17, 2003 3:25 PM To: [email protected] Subject: Re: Repatriation Holiday hi pam. can you help me out with this query? thanks. --harvey Forwarded by Harvey S. Rosen/CEA/EOP on 07/17/2003 03:25 PM Brian Reardon 07/17/2003 02:24:21 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: Alan D. Viard 07/17/2003 03:49:56 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: bcc: Subject: Re: Repatriation Holiday Right - the firms with excess foreign tax credits won't repatriate their money and therefore, as our memo states, will not benefit - the firms that repatriate will, as Brian says, be the ones that don't have excess foreign tax credits. Harvey S. Rosen Harvey S. Rosen 07/17/2003 03:25:34 PM Record Type: Record To: Alan D. Viard/CEA/EOP@EOP CC: Subject: Re: Repatriation Holiday alan, any thoughts on how to respond to this query? --harvey Forwarded by Harvey S. Rosen/CEA/EOP on 07/17/2003 03:25 PM Brian Reardon 07/17/2003 02:24:21 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: bcc: Subject: Re: Repatriation Holiday hey harvey thanks for this Question: You mention excess foreign tax credits several times, but my impression is the money that would be repatriated doesn't qualify for these, since its likely passive income from a low-tax regime. Is that not the case. Harvey S. Rosen Harvey S. Rosen 07/17/2003 01:32:43 PM Record Type: Record To: Brian Reardon/OPD/EOP@EOR CC: Subject: Repatriation Holiday brian, here's my shot at the proposed tax holiday for repatriated foreign earnings. i hope that you find it convincing! best, harvey W temporary repatriation 7.17hr2. Brian Reardon 07/17/2003 02:24:21 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: bcc: Subject: Re: Repatriation Holiday hey harvey thanks for this Question: You mention excess foreign tax credits several times, but my impression is the money that would be repatriated doesn't qualify for these, since its likely passive income from a low-tax regime. Is that not the case. Harvey S. Rosen Harvey S. Rosen 07/17/2003 01:32:43 PM Record Type: Record To: Brian Reardon/OPD/EOP@EOP CC: Subject: Repatriation Holiday brian, here's my shot at the proposed tax holiday for repatriated foreign earnings. i hope that you find it convincing! best, harvey W temporary repatriation 7.17hr2. Nirupama Rao 07/15/2003 02:47:58 PM Record Type: Record To: Harvey S. Rosen/CEA/EOP@EOP CC: Subject: Investment (Nat. Acct. Values) Harvey, Still tracking down the info on MNC domestic investment; thought I'd pass these numbers along first. Gross Investment, SAARs in billions: 2003Q1 $1404.8 2002FY $1456.2 2001FY $1545.1 2000FY $1679.4 Gross Private Domestic Investment, SAARs in billions: 2003Q1 $1611.2 2002FY $1593.2 2001FY $1586.0 2000FY $1755.4 -nirupama best guen $ 4066 in is domentic CABEX multi for nutreds baseds. mus. Mn Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email repatriation memo - To: Beth ann Wilson - From: Kristin J. Forbes 1 07/14/2003 P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: repatriation stuff - To: Harvey S. Rosen - From: James Mackie 1 07/15/2003 P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Handwritten Note Temporary Repatriation 1 N.D. P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Machi 7/11/03 strong in centrue to accelente repations They can are a 956 exclusion only cost of Me att The ex cen nedit companies -- about 1/2 The companies are m excess credit pos Jin. renestment in US is about n 3006. a would There be a /3 increase? for of companies like Dell have toing from cash already Ania 36 in carl m The U.S. Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Memorandum [Repatriation Proposal] - To: Pam Olson - From: Harvey S. Rosen, et al 2 06/12/2003 P5; This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA]. and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: Repatriation Proposal Memo - To: Cesar Conda, et al - From: Keith 2 06/12/2003 P5; Hennessey This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: Reducing tax on domestic reinvestment of foreign earnings - To: 4 06/11/2003 P5; Harvey S. Rosen, et al - From: Nicholas G. Mankiw This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: Temporary repatriation proposal - To: Nicholas G. Mankiw - From: 2 06/10/2003 P5; Randall S. Kroszner This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(I) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS Withdrawal Marker The George W. Bush Library FORM SUBJECT/TITLE PAGES DATE RESTRICTION(S) Email RE: Foreign dividend repatriation proposal - To: Nicholas G. Mankiw - 4 06/09/2003 P5; From: Pam Olson This marker identifies the original location of the withdrawn item listed above. For a complete list of items withdrawn from this folder, see the Withdrawal/Redaction Sheet at the front of the folder. COLLECTION: Council of Economic Advisers SERIES: Rosen, Harvey - Subject Files FOLDER TITLE: Dividend Repatriation Proposal FRC ID: FOIA IDs and Segments: 5919 2015-0056-F OA Num.: 5009 NARA Num.: 4849 RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P1 National Security Classified Information [(a)(1) of the PRA] b(1) National security classified information [(b)(1) of the FOIA] P2 Relating to the appointment to Federal office [(a)(2) of the PRA] b(2) Release would disclose internal personnel rules and practices of P3 Release would violate a Federal statute [(a)(3) of the PRA] an agency [(b)(2) of the FOIA] P4 Release would disclose trade secrets or confidential commercial or b(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] b(4) Release would disclose trade secrets or confidential or financial P5 Release would disclose confidential advise between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] b(6) Release would constitute a clearly unwarranted invasion of P6, Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] b(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] PRM. Personal record misfile defined in accordance with 44 U.S.C. b(8) Release would disclose information concerning the regulation of 2201(3). financial institutions [(b)(8) of the FOIA] b(9) Release would disclose geological or geophysical information Deed of Gift Restrictions concerning wells [(b)(9) of the FOIA] A. Closed by Executive Order 13526 governing access to national Records Not Subject to FOIA security information. B. Closed by statute or by the agency which originated the document. Court Sealed - The document is withheld under a court seal and is not subject to C. Closed in accordance with restrictions contained in donor's deed the Freedom of Information Act. of gift. This Document was withdrawn on 4/6/2016 by DRS