Posted on 12/28/2016 1:31:52 AM PST by GonzoII
At least $2.6 trillion in American corporate profits are parked outside the country, and President-Elect Donald Trump’s major tax reform plan could bring it back into the United States — which could provide a big boost to the economy and federal revenue.
Trump’s plan is part of his larger business tax plan to lower the corporate tax rate from a top rate of 35 percent down to 15 percent.
A key element is also providing a one-time tax rate of 10 percent on offshore corporate profits brought back to the United States, or repatriated money. After the one-time tax, the country would move to a “territorial” tax system, meaning only profits earned inside the country would be taxed. Ideally, this would do away with a disincentive for companies to reinvest inside the United States.
(Excerpt) Read more at lifezette.com ...
Trillion$? That’s serious money even after 57 years of inflation.
Ok, but what will they do with the 2.6 trillion? How will it help the economy?
They’ll reinvest a good chunk of it back into their businesses. That means more hiring, more money in their employees’ pockets to spend means more money flowing into the economy. Some will go into new equipment, etc, benefiting suppliers.
Look at it this way. Your employer pays you. Then you pay other people—the mortgage company, the grocery store, your wife’s hair stylist and on it goes.
Then they turn around and pay people. It just keeps flowing to the benefit of many.
I suspect some will come back, but; until we tighten our belts and pay down that 20 trillion debt-the fear of a bankrupt US where the bank keeps your paper money is still present.
Simply put... “a rising tide lifts all boats”
It is high time, for America to begin investing in America once again.
We have sent far, far too much American businesses elsewhere.
For over one entire generation. Both sides. Everyone, has been selling out America.
Now we have a guy in charge, it appears, who is for America once again.
Hooray, if Trump is really as pro-American as he seems, it is entirely without precedent in importance.
About, darned, time.
The less money parked outside the US, the less people want to put it to work outside the US. Profits brought home could be put to work here, as others have said, and make offshoring far less attractive for those companies.
This, of course, is what democrats dismiss as "trickle down" economics. They prefer "investing in our people," by which they mean higher food stamp and other welfare benefits, which produces greater sales of twinkies and soft drinks at the corner store, higher drug sales, more bling for the dealers, and even more welfare babies in the next generation, which democrats call "growing the economy at the grassroots."
Trickle down works both ways. It's just a question of which future America you want to build.
Why bring them back and pay a 10% tax when they can leave the money offshore and pay nothing?
It's money businesses have locked up outside the country - current tax policy makes it prohibitive to bring it back for investment/expansion. When businesses have money to expand, it creates jobs.
When? Because the tide has risen dramatically for the top 1% over the last 30 years. The rest? Not so much.
That’s the correct question. It won’t necessarily help the economy.
It won’t necessarily even come back to the US. The deemed repatriation tax is assessed regardless of whether or not it comes back, but not all of it will by any means, and even if it does, they still have to think of something worthwhile to do with it here.
Damn right.
Lemme know when the average corporation starts offering pension plans again that used to be common.
Right after Buffet gives back the 12 billion he made in the last 3 months.
They can do what ever they choose...... it’s their money
It should in large measure be paid in the least taxable manner to stockholders, perhaps as tax free dividends
wow....you sound like a sour grapes unionist progressive in FReeper clothes
Because unless they can invest it in their businesses overeas, it’s sitting there doing nothing, or most probably the tax rate on the parked money is lower than our current tax rate. It’s effectively dead money at the moment for many of these companies.
You enjoy the scraps from the table bubba
And as for Mr. Trump, he clearly ran on the same themes you condemn: his entire platform is protectionist AND claims of rising wealth for the Working Man
So what’s your opposition to pension plans, Berty? You live in genteel poverty while admiring the Robber Baron rapists from your lonely little hovel?
GFU and go live in your closet of jealousy of those that have done well
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