The U.S. dollar is on its way out from being the world's reserve currency, but tax breaks given to companies repatriating overseas earnings could strengthen the currency, says international investor Jim Rogers, a noted commodities bull.

"The U.S. dollar has started fading as the world's reserve currency," Rogers tells MarketWatch.

"However, the dollar could get a temporary boost if the government allows U.S. companies to repatriate their overseas cash without onerous taxation."

Jim Rogers (Getty Images photo)

Many corporations earn money overseas but are subject to taxes if they bring it back home.

Some Democrats oppose giving companies a tax break to bring that money back, which could be used for investments or in other job-creating channels.

Senator Carl Levin, D-Mich., says in a report that a similar tax holiday approved in 2004 cost the government billions of dollars in sorely needed government revenue while failing to boost economic output in the process.

"The 2004 repatriation not only failed to achieve its goal of increasing jobs and domestic investment in research and development, it did little more than enrich corporate shareholders and executives while providing an estimated $3.3 billion tax windfall for some of the largest multinational corporations," the report states, according to POLITICO.

Senators Kay Hagan, D-N.C., and John McCain, R-Ariz., are proposing legislation that would let U.S. businesses bring home offshore profits at an 8.75 percent tax rate, or even lower if they expand payrolls.

The current top corporate rate is 35 percent.

"I want to use every tool in the toolbox that’s at our disposal to help our economy and put people back to work," says Hagan, according to Bloomberg.