President Trump is touting his new tax reform plan. While the details are not yet finalized, one thing is for certain: American taxpayers will get to keep more of their hard-earned money. And that’s a good thing. But the real beneficiary of tax reform will be American corporations. You see, one of Donald Trump’s promises is to provide relief for corporations by way of a one-time low-rate tax on trillions of dollars held overseas. It’s estimated that U.S. corporations hold approximately $2.7 trillion in foreign banks. Currently, they are unwilling to “repatriate” this money because of the U.S. government’s confiscatory… Read More
President Trump is touting his new tax reform plan. While the details are not yet finalized, one thing is for certain: American taxpayers will get to keep more of their hard-earned money. And that’s a good thing. But the real beneficiary of tax reform will be American corporations. You see, one of Donald Trump’s promises is to provide relief for corporations by way of a one-time low-rate tax on trillions of dollars held overseas. It’s estimated that U.S. corporations hold approximately $2.7 trillion in foreign banks. Currently, they are unwilling to “repatriate” this money because of the U.S. government’s confiscatory tax rate of 35% — the highest in the developed world. Thus, if Trump is successful, American businesses will repatriate its cash back to America at a significant savings to today’s business-killing tax-rate. What isn’t clear, however, is what the tax rate will be on repatriation. #-ad_banner-#So we look to history for precedents. This isn’t the first time the government has come to its collective senses and reduced individual and corporate tax rates. Back in 2004, George W. Bush signed the Homeland Investment Act, part of the American Jobs Creation Act. The act gave a one-time deduction of 85% on… Read More