GOP bets that tax bill will unlock corporate cash overseas

[Yo_Mama_Been_Loggin]

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 GOP’s 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. People who know (on our side) say it's BS - like Richard D. Wolff and

David Cay Johnston. Worth looking at their youtube vids for the skinny.

[njhoneybadger]

2. Get ready for another housing bubble

And then major meltdown

[WinkyDink]

3. Grassley believes nothing of the sort.

[Squinch]

4. Nah. They don't really believe this. They don't give it any thought except for knowing

they have to pay the ones who bought them.

[struggle4progress]

5. *snork*

[NCjack]

6. I have a better plan to bring that money

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]

7. They move jobs overseas so they can pay pitiful wages

They also manufacture in countries that have non-existent environmental standards.

I don't think this has anything to do with taxes.

[jmowreader]

8. Okay, let's see if I understand this

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.