Corporate Tax Holiday With a Twist

Sep 1, 2017

The Trump administration is considering a type of tax holiday for companies that keep their overseas earnings overseas. President Trump on Wednesday said, “By making it less punitive for companies to bring back this money, and by making the process far less bureaucratic and difficult, we can return trillions and trillions of dollars to our economy and spur billions of dollars in new investments in our struggling communities throughout our nation.” However, what the president did not say was that the administration is considering a plan to make the tax holiday mandatory. Under the plan the tax deferral on overseas profits would be removed. All foreign profits would be considered to have been repatriated. However, the forced repatriated profits would be taxed at a preferential “transition” rate and be payable over several years. The government is attempting to move towards a system of territorial taxation. Under the system, U.S. companies would not be taxed by the U.S. government on their overseas profits. The tax plan has not been finalized and may change considerably after discussions with members of Congress.
http://www.breitbart.com/big-government/2017/08/31...