Multinational firms domiciled in the United States do not have to pay U.S. income taxes on foreign earnings, unless those earnings are returned to the United States. Accordingly, the U.S. income tax system acts as a deterrent to firms to bring cash earned abroad back to the United States. In 2004, the U.S. Congress passed the American Jobs Creation Act. One of the stated objectives of this act was to induce U.S. multinational firms to bring cash back to the United States to support growth of the domestic economy. Research the American Jobs Creation Act of 2004 and answer the following questions:
a. What was the incentive included in the Act to induce firms to bring cash earned abroad back to the United States?
b. Approximately how much cash was repatriated during the incentive period of the act?