Reply to post: Re: Not surprized

Make Apple, er, America Great Again: iGiant to bring home profits, pay $38bn in repatriation tax


Re: Not surprized

"Trump has fixed the latter issue, with the predictable results we now see."

Has he, though?

Part of the reason for the offshore cash piles that many US companies have built up is that the Bush administration gave a tax holiday on repatriating profits. Companies basically took this as a signal that, if they just held enough money offshore, Republican administrations would give cut-rate prices to bring the money home sooner or later. Trump's just confirmed that.

Odds are, most multinationals will look at the 20% 'normal' rate, look at the 15.5% 'one-off' rate, and decide that they can expect the same or better 'one off' deal in about ten years, so why pay more? The money is more useful for investment outside the US anyway, and shareholders can happily wait a decade for a windfall payout. And Republicans will use that to argue for slashing the rate to 10% next time - with a 5% one-off rate for the backlog.

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