Trump Could Bring Home $2.6 Trillion in Offshore Profits
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.
“We want to bring the money back here. Under the present law, you’re better off leaving it in Japan to build a factory. That’s stupid policy.”
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. – READ MORE