Trump's tax promise of trillions back to US fails to materialize

[Yo_Mama_Been_Loggin]

The amount of offshore cash U.S. corporations have returned home so far this year is just a fraction of what President Donald Trump had promised.

A Morgan Stanley report released Thursday estimates companies brought back from $50 billion to $100 billion in the third quarter -- which would bring the total repatriated back to the U.S. to as little as $514 billion, based on previously released figures for the first and second quarters from the Commerce Department.

The tax overhaul signed into law by Trump in December gave companies incentives to bring money back to the U.S. by offering a one-time low tax on repatriated profits.



Key Insights
Even though companies are less restricted in moving their offshore profits under the U.S. tax overhaul, corporations, in aggregate, are choosing to keep earnings in their foreign subsidiaries, according to a team of Morgan Stanley analysts led by Todd Castagno.

https://www.msn.com/en-us/money/markets/trumps-tax-promise-of-trillions-back-to-us-fails-to-materialize/ar-BBQAR8O?li=BBnb7Kz

[Pantagruel]

1. And here's the probable cause

As someone posted earlier:

GOP tax bill cut taxes on foreign production, driving US plant closures

The corporate rate on both US and foreign profits used to be 35% (although tax breaks regularly reduced the actual tax rate companies would pay). Starting this year, however, the US corporate tax rate on domestic profits is 21%, while the foreign tax rate is just 10.5%. Not only that, they also get to subtract foreign taxes paid from what they have to pay the US government. So if they pay more than 10.5% to a foreign government, they will pay no US taxes at all on their foreign profits. It’s estimated the corporate tax reduction alone will cost $1.3 trillion over the next decade, and encourage corporations to focus on overseas production in order to avoid American taxes.

https://patrioticmillionaires.org/2018/11/30/gm-layoffs-result-of-trump-tax-plan/