Carl Icahn to fund super PAC to push corporate tax reform

"I am starting a Super PAC with my initial commitment of $150 million to help end the crippling dysfunction in Congress", Icahn .

Billionaire Carl Icahn is putting his money where his mouth is when it comes to corporate taxes, which he wants lowered to encourage US companies to return $2.2 trillion held overseas. He stated additionally he sent the letter to congressional leaders & to all members of the Home & Senate tax-writing committees.

"If this exodus is allowed to accelerate, there will be disastrous consequences for our already fragile economy, as well as meaningful and unnecessary job losses", Icahn says. Icahn believes the answer to this is a one-time repatriation tax of somewhere between 5% and 10%. He put roughly $75 million of his own money into the political organization he created to advance his agenda on climate change, a tally by the non-partisan Center for Responsive Politics shows.

Technically known as independent expenditure-only committees, super PACs may raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to overtly advocate for or against political candidates.

It's yet to be seen if Icahn will join Trump on the campaign trail in the weeks ahead to push for tax and economic reform.

Given tax rates, it's no wonder it is in no hurry to repatriate funds: according to a WalletHub study, Apple enjoyed a 4.4% global tax rate overseas in 2014, compared to the 59.4% federal tax rate it estimates the company was subject to past year.

Icahn's proposed reforms not only aim to bring back the company taxes but also reduce the incentive for their leaving the country in the first place.

In order to twist the arm of Congress members who can fast-track the legislation, Icahn has brazenly threatened to dump millions to unseat them in their next elections. If instead Apple were to use that $90 billion to buy back even more of its shares, that would increase his ownership of the company and potentially increase the value of his shares as supply falls. I intend to make the letter public in the next few days.

"Icahn concluded the letter with a call to action by the House Ways and Means Committee and the Senate Finance Committee to take the "'simple actions' necessary to prevent what could turn into disaster".

"I am not exaggerating when I say if you do not, our country runs the risk of losing its hegemony and those of you who are in power will have only yourselves to blame", he wrote.

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