How Tax Bills Would Reward Companies That Moved Money Offshore

How Tax Bills Would Reward Companies That Moved Money Offshore
Mr. Trump predicted on Tuesday that trillions of dollars would be repatriated — money, he said,
that companies currently are “just not able to bring back.”
Under current law, American companies pay taxes on their worldwide profits at a rate of 35 percent, the highest statutory rate in the world.
It would take a generation to see if the strategy would fully pay off,
because the law allowed companies only to defer the taxes on overseas earnings, not to permanently avoid them.
It would establish a minimum tax abroad on certain types of income — at least 10 percent for the first several
years in the Senate version — thus raising the tax bills for many companies on their foreign profits.
President Trump and congressional Republicans argue
that it’s important to get companies to bring the money home because it would be used to create jobs — although that didn’t happen the last time lawmakers enacted a similar tax break.
But the law has a big caveat: Companies can indefinitely defer the taxes on profits earned abroad — as long as those profits stay overseas.