Tonight, President Trump outlines a key part of his tax proposal: a repartition holiday that would lure billions of dollars offshore to America.  Democrats will say this plan didn’t work when President Bush tried it, but their work to make their point was specious at best.

Democrats in the Senate took the next three years to assess the impact of a one-year tax break and concluded the top 15 companies actually saw 20,000 net job losses and reduced research and development spending.  I think the better way to assess the results is a look at the immediate impact.

My Observations

Bush repatriation holiday enacted in October 2004 with a 5.25% rate (versus 35% rate) for companies bringing profits back to the United States.  Results:

• 843 companies brought money home (out of potential 9,700)
• $362 billion repatriated (estimates were for $400 billion)

http://www.taxhistory.org/www/features.nsf/Articles/E7A958612953C1EF852578FD00607975?OpenDocument

Impact on the Economy?

• 2005 GDP 3.4% (the last year United States achieved 3.0%+ GDP)
• Job Increase at faster/larger pace and unemployment rate decreased
• 2003 +1,251,000 unemployment rate 6.0%
• 2004 +1,516,000 unemployment rate 5.5%
• 2005 +2,478.000 unemployment rate 5.1%

https://www.bls.gov/cps/aa2005/aat1.txt

I’ll review the speech immediately after on my show:  Making Money with Charles Payne on Fox Business Network. 

The markets are relatively flat ahead of the release of the FOMC’s September meeting minutes, which is due out at 2:00 ET.  Advancers are leading declines 1,545/1,244 on the NYSE with 171 stocks hitting a 52-week high and 17 hitting a 52-week low.  On the Nasdaq, advancers led decliners 1,441/1,356 with 190 stocks hitting a 52-week high and 28 hitting a 52-week low.