healthmyths
Platinum Member
- Sep 19, 2011
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As of 2015, US corporations accumulated more than $2.6 trillion of earnings in foreign subsidiaries, according to the Joint Committee on Taxation.
www.taxpolicycenter.org
Trump pushed congress to pass the 2017 Tax Cuts and Jobs Act (TCJA),
As a result, US companies brought back nearly $ 1 trillion of the above $2.6 trillion offshore.
Immediate net result according to the CBO Federal Tax revenue would increase over the next 9 years by $570 billion!
All because US companies could bring back money from overseas and pay less taxes! THINK what that meant!
The Multiplier EFFECT:
THINK folks... If companies brought back $ 1 trillion and paid or will pay $570 billion in taxes, What happens to the remaining $430 billion? Did the companies hid under their mattresses or bury in the back yard... OR did some of them pay dividends...(which by the way are taxable to the dividends recipients! Or did they as the Multiplier Effect invest in new facilities, hiring people, exactly what did these companies do? That's the MULTIPLIER EFFECT!
Proof???
The remaining beneficiaries of repatriated cash thus far have been capital expenditures--{money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.} (capex) and dividends on a forward-looking basis. Relative to Q12017, capex spending has increased 21 percent with the 24 U.S. companies with the largest foreign cash holdings accounting for over half of the increase in dollar terms, resulting in a 57 percent increase in capex for that group.
www.wealthmanagement.com
"money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment."
Multiplier EFFECT!!!
What is the TCJA repatriation tax and how does it work?
Before the 2017 Tax Cuts and Jobs Act (TCJA), the United States generally taxed its corporations and residents on their worldwide income. However, a US...
As a result, US companies brought back nearly $ 1 trillion of the above $2.6 trillion offshore.
Immediate net result according to the CBO Federal Tax revenue would increase over the next 9 years by $570 billion!
All because US companies could bring back money from overseas and pay less taxes! THINK what that meant!
The Multiplier EFFECT:
THINK folks... If companies brought back $ 1 trillion and paid or will pay $570 billion in taxes, What happens to the remaining $430 billion? Did the companies hid under their mattresses or bury in the back yard... OR did some of them pay dividends...(which by the way are taxable to the dividends recipients! Or did they as the Multiplier Effect invest in new facilities, hiring people, exactly what did these companies do? That's the MULTIPLIER EFFECT!
Proof???
The remaining beneficiaries of repatriated cash thus far have been capital expenditures--{money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.} (capex) and dividends on a forward-looking basis. Relative to Q12017, capex spending has increased 21 percent with the 24 U.S. companies with the largest foreign cash holdings accounting for over half of the increase in dollar terms, resulting in a 57 percent increase in capex for that group.
Companies Using Repatriated Cash on Stock Buybacks, Capex Spending, Dividends
The new tax law has firms like Apple, Oracle, Google and Cisco spending their trillions of un-repatriated earnings.
www.wealthmanagement.com
"money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment."
Multiplier EFFECT!!!
