November 3, 2017

Associated Press: Why Tax Plan Might Not Put US Firms’ Overseas Cash to Work

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Apple has more than $230 billion overseas, Microsoft $124 billion, according to the Institute on Taxation and Economic Policy.

Returning those overseas profits to America, the Republicans say, would give the economy a healthy jolt as companies put their newly available cash to work.

But critics note that a similar one-time “tax holiday” on overseas profits generated little economic oomph 13 years ago. The 2004 American Jobs Creation Act temporarily cut taxes on repatriated profits to 5.25 percent from 35 percent. About 9,700 companies were eligible for the tax break and 843 took advantage of it, bringing back $312 billion. Read more



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