Pilt GITT

[CBradSmith]

You're in Trumps position.

What do you do about offshore Corp money?

You're in the mood to make a deal...what does it look like?

 

[07pilt]

Nothing. Or raise taxes on profits earned by foreign subsidiaries if I am going full bore economic nationalism.

Reasons:
1. I don't need taxes to fund the government
2. The money isn't necessarily offshore except for accounting purposes. Apple doesn't have billions of dollars stuck in Ireland. It is all in banks in NYC
3. "offshore" money can be used on investment in the US without being repatriated. Basically the only thing the offshore money can't be used for is dividends or stock buy backs.
4. The money is already taxed on the company's income statement and is reported as a deferred tax liability on the balance sheet. So any tax holiday or lowered rate is recognized immediately as a profit. This all adds up to a giant moral hazard and favors companies that can move most of their profits offshore.

 

[CBradSmith]

That's not imaginative.

 

[CBradSmith]

I challenge you to do it a different way.

A way that gives value to symbolism and corporate "buy-in" to deals where repatriated money is earmarked for socially desirable projects, like inner city school modernization and refurbishing (for example, but feel free to use your own).

 

[07pilt]

I challenge you to do it a different way.

A way that gives value to symbolism and corporate "buy-in" to deals where repatriated money is earmarked for socially desirable projects, like inner city school modernization and refurbishing (for example, but feel free to use your own).

Teacher pay.

 

[squeak]

You also can't use that cash for acquisitions or domestic obligations if you can't show that you can do it with money earned in the US. If you do, then it is considered repatriated.