Companies were able to repatriate one trillion dollars back into the United States, thanks to the Trump tax cuts.
Before that, in order to bring money home, companies would have had to pay a corporate tax of 35%.
But under the Trump tax cuts, they only pay a one-time 15.5% tax rate on cash, and 8% on non-cash or illiquid assets.
Companies did not bring that money home to sit on it or to buy certificates of deposits. They are taking profits from overseas and investing it right here in the United States.
That’s one trillion dollars into our economy that we would not otherwise have.
That money is either used to expand their business, to start new businesses, or is invested in expanding businesses in the hopes of making a nice profit, all of which means more jobs for Americans.
Currently, due to the leadership of President Trump, our economy is expanding almost 2 1/2 times faster than the rest of the world.
Our stock market is the envy of the world, and thanks to the climb in our stock markets, people with 401ks have experienced the kind of growth they could only dream of under Obama.
“The repatriation figures were included in the quarterly report on the current-account deficit, which narrowed by $1.1 billion to $124.1 billion in the July-to-September period. The gap is considered the broadest measure of international trade because it includes income payments and government transfers.”
The Wall Street Journal reported in September 2018 that the pace is still considered slow.
Some companies, such as Chevron Corp. and Archer Daniels MidlandCo., have long plowed foreign profits into foreign factories, equipment and other assets that aren’t likely to move. Other companies said they need funds overseas for acquisitions, debt retirement, and expansion in growing markets. Moreover, foreign regulators require banks and other financial companies to maintain substantial capital reserves abroad. Those corporations don’t plan to bring much cash home.
Even without the federal government taxing new foreign income as it comes home, costs remain to moving cash across borders. Some U.S. states tax repatriated profits, and some countries impose taxes on dividends paid to parent companies.
Meanwhile, America is in the middle of its greatest stock market rally ever, The Gateway Pundit reported last week.
