Dew,
When I was talking about the Homeland Investment Act (HIA), which is current in the ETI replacement legislation and I believe Barron's has an article on the act in its latest edition (10.18.2004), I was referring to the legislation that would allow U.S. companies to repatriate foreign earnings back into the U.S. at a reduce rate of 5%. The significance of the legislation is it allows companies to repatriate up to $500 million at the reduce rate of 5% (compared to the typical 35% corporate rate), however, the repatriated funds must be reinvested within the next taxable year (essentially reinvested sometime in 2005). JPM came out with a research report estimating the potential repatriation of the S&P 500 companies at nearly $400 billion. They believe the act could boost GDP by one-half percent and lead to a 2-3% increase in the national level of capital spending.
The strongest supporters have been large-cap manufacturing and the following pharmaceutical companies: BOL, LLY, GDT, JNJ, MRK, SGP, WYE.
Both the House and Senate have approved the act so its currently waiting approval by the President. Experts predict no matter who's President (Bush or Kerry) they will approve the act. Hopefully the passing of this act will encourage big pharma to open up their wallets and strike some lucrative partnership deals with the GENR's of the world.
Dew, what's your take on ACL? Do you think they have GENR on speed dial?
10nis
