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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsGOP bets that tax bill will unlock corporate cash overseas
Republicans and major technology firms who support a tax overhaul have touted reforms that they say will bring offshore profits back into the country, boosting U.S. tax revenue and benefiting the economy.
But critics are skeptical of those claims, doubting that both the House and Senate versions of the tax bill give companies like Apple the incentive to bring money into the U.S. over the long term.
One of the central pieces of the Republican plan is a one-time lower rate on foreign income repatriated to the United States.
Under the House bill, foreign companies could pay a 7 percent rate on repatriated illiquid assets and a 14 rate on repatriated cash or assets that are easily convertible to cash, while the Senate rates would be 5 and 10 percent, respectively.
The repatriation would be paired with a dramatic cut in the corporate tax rate to 20 percent and a shift to a territorial tax system, two things corporations have long asked for.
Sen. Chuck Grassley (R-Iowa), who sits on the Senate Finance Committee, said he believes the GOPs tax reforms will not only bring earnings back onshore, but also attract a lot of foreign investment to the U.S. from overseas.
But Democrats and tax experts question why U.S. companies would continue bringing profits back to the U.S. once the lower rates for repatriation expire.
http://thehill.com/policy/technology/361612-gop-bets-that-tax-bill-will-unlock-corporate-cash-overseas
bagelsforbreakfast
(1,427 posts)David Cay Johnston. Worth looking at their youtube vids for the skinny.
njhoneybadger
(3,910 posts)And then major meltdown
WinkyDink
(51,311 posts)Squinch
(51,090 posts)they have to pay the ones who bought them.
struggle4progress
(118,379 posts)NCjack
(10,279 posts)home to USA.
Each week, raise the tax rate 1% on that money. When the tax rate grows to 100%, that money belongs to the IRS, and it gets the assignment to seize it and bring it home.
There would be a flood of money coming home on the first week.
It's time to stop coddling tax evading corporations and persons.
LeftInTX
(25,811 posts)They also manufacture in countries that have non-existent environmental standards.
I don't think this has anything to do with taxes.
jmowreader
(50,601 posts)Corporations are currently paying no tax on the earnings and assets they have stashed overseas.
If the House's version of Trump Tax Deform makes it to General Secretary Trump's desk, they will pay 7 percent on illiquid assets brought to the US, or 14 percent on cash and liquid assets.
If the Senate's version makes it there, they'll pay 5 percent and 10 percent.
But if they leave the money overseas, it'll still not be taxed.
Is there something I'm missing here? Why in fuck would anyone repatriate earnings and pay tax on them, when they can leave them overseas and not pay tax on them? Either way they're going to get their 20 percent tax rate.