Posted on 01/12/2018 10:30:06 AM PST by Oldeconomybuyer
WASHINGTON - A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.
Stemming from a Republican overhaul of international business taxes, the loophole involves the tax rates - 15.5 percent or 8 percent - that companies must pay on $2.6 trillion in profits they are holding abroad.
By manipulating their foreign cash positions, a determining factor under the new law, a U.S. multinational could potentially save money by shifting profits to the lower rate from the higher one, according to Stephen Shay, a senior lecturer at Harvard Law School.
The savings could amount to more than $4 billion in Apple’s case alone, he said.
“This is clearly the result of rushed legislation,” said Shay, formerly a top Treasury Department tax official.
(Excerpt) Read more at reuters.com ...
Get the off-shore cash back into the U.S. economy.
This is a great plan.
The Feds need money for sure, but they should reduce their spending to get to where they need to be..
I believe that was the point of the tax change, to repatriate money being held overseas. That means that it isn’t a loophole.
Rooters upset the government is not robbing people....
If it’s a loophole, it’s legal. It’s not a dodge. I pay the minimum legal amount I’m required to. Shouldn’t a business?
Great, so now those companies with huge stashes of cash overseas can bring that money back to the US and invest it in new stuff instead of giving it to the government wastrels.........Only a liberal would see a bad thing in this.....................
Rueters acting as the Rat propaganda ministry. It’s a feature of the tax law a-holes.
Just keep the money away from the gubmint. Do all you can. Stop foreign aid and welfare for the able bodied. Make Americans WORK AGAIN !!! Im tired of carrying them.
Yup. Trump talked about this a lot on the campaign trail. It was always part of the plan.
As long as they bring it back to the US, I’m fine if they pay zero tax.
Reuters is the last entity in the US to realize we hoped corporations would use this tax policy to repatriate trillions do the US.
Wow.
Gee, I read last week where Apple plans to bring back $zillion from offshore holdings.
These the same corporate collective hives who believe it’s their “private” entitlement to silence those within their purview whilst trampling the spirit of the 1st amendment?
These people are unbelievably stupid or more likely, dishonest.
The lower rate of 8% was to encourage bringing the money back from oversees. DUH.
Isnt this just the repatriation plan so US companies return their offshore money to the USA to invest? That was a vornerstone of Trump’s plan.
Exactly. For the US economy, this is found money at any percentage rate.
It is not rushed legislation, it is what was promised.
The whole point was to create a taxation scheme that would prompt Companies to repatriate funds held overseas, about 4 Trillion’s worth.
I thought the law was temporary, I need to read more about that point.
“This isn’t a loophole, it’s the main benefit!”
There is nothing more contemplated,more thought out,or given more consideration in a bill than the loopholes.
Marko
I feel so horrible for all the 401 and pension plan holders....
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