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Disregard the link with the confusing title and think critically for a moment. Do you really think the US government is forcing all companies to bring any and a
by prklmn 9y ago
Disregard the link with the confusing title and think critically for a moment. Do you really think the US government is forcing all companies to bring any and all profits earned and stored overseas back to the United States? That’s what you’re implying.
- IBM 9y agoThe US government is forcing all companies to pay a mandatory tax of 15.5% on all overseas profit that was designated as "indefinitely reinvested" under the previous tax regime. This is a mandatory one-time tax as part of a shift to a territorial system. Multinationals can do whatever they want with the cash, but considering that they've been lobbying government on a repatriation bill for over a decade specifically to be able to do domestic M&A, pay dividends, or do share buybacks, it's pretty obvious that all of that cash is coming back to the US. A business that wants to reinvest all their cash internationally is free to do so (and in fact the previous tax regime incentivized it), but they're going to be paying US tax on what they've accumulated so far.
- pdeuchler 9y agoWhere the database that holds the dollar amount is located doesn't matter, what matters is where it's taxed and where it's spent. The US government _forced_ the companies to pay this tax, that point is irrefutable.
- downandout 9y agoAll taxes are compulsory - "_forced_" - as you put it. Who would pay them if they weren't? However, they are free to invest it wherever they choose, and they have chosen the US. That is not "mandatory repatriation".