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Overseas Corporate Bill Gets Senate Approval

U.S. lawmakers are considering offering incentives for financial repatriation.

A bill that aims to encourage multinational corporations to use foreign profits in the U.S. recently won supporters in the Senate, Reuters reports.

That news offers a boost to international businesses, the source says, as the bill's authors - Senators John McCain and Kay Hagan - seek

A bill that aims to encourage multinational corporations to use foreign profits in the U.S. recently won supporters in the Senate, Reuters reports.

That news offers a boost to international businesses, the source says, as the bill's authors - Senators John McCain and Kay Hagan - seek to push the Foreign Earnings Reinvestment Act through by tying it to President Barack Obama's jobs plan.

Karen Olick, director of the WIN American campaign, was quoted by the news source as saying the legislation was key to moving forward the "effort to jump-start our economic recovery" and would bring in more than $1 trillion in investments from foreign companies.

The Winston-Salem Journal reports that a similar law passed in 2004, the Homeland Investment Act, sought to give companies more breathing room on their earnings but that the new bill is different. Hagan said the FERA would encourage companies to pump up their wages and add jobs. One provision in the bill would charge companies that repatriate funds $75,000 for every person they drop from the payroll.

However, not everyone is convinced the idea is a good one. Linda Beale writes for the Angry Bear blog that the money that would go to repatriated fund taxes over the next decade would be better spent creating infrastructure construction jobs.