The Soapbox

BocaHoo91

Joined: 06/03/2005 Posts: 31007
Likes: 52333


The 5.25% and 21% comparison is misleading. Companies get a


foreign tax credit and only have to pay the difference between the 35% US rate and the rate paid to the foreign jurisdiction. So if you paid a 20% tax in a foreign jurisdiction, the repatriation holiday allowed you to pay just a 5.25% tax (instead of the full 15% difference). With a 21% rate, a company repatriating profits that they had already paid 20% tax on to a foreign jurisdiction on would only have to pay 1% tax, far LESS than the 5.25% tax holiday.

I think this will bring a shitload of cash back.

Yes, I agree the cash doesn't just sit overseas... that it is used and invested overseas. That is a problem.

And I still don't understand why distributing cash to shareholders is considered a bad outcome.


(In response to this post by THECZAR)

Posted: 12/14/2017 at 12:03PM



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