December 19, 2017

BBC: Will Trumps Plan Trigger a Tax War?

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To offset the revenue losses, the US is imposing a one-time tax on profits held abroad, levied at 15.5% for cash and 8% for illiquid assets.

Depending on your perspective, the measure either captures tax that firms otherwise would have avoided, or provides companies with a major break on what they would have otherwise owed.

“Allowing them to pay a low rate is basically a get-out-of-jail halfway free card,” said Matthew Gardner, senior fellow at the Institute on Taxation and Economic Policy, a left-leaning Washington think tank. Read more