U.S. Cash Repatriation Plunges 50%, Defying Trump's Tax Forecast
(Bloomberg) -- The amount of offshore cash corporations are bringing back to the U.S. dropped sharply for a second straight quarter, falling short of the trillions of dollars President Donald Trump had promised would result from his tax overhaul.
Companies repatriated $92.7 billion in the July-September period, the lowest amount this year and down almost 50 percent from the previous quarter, according to data released Wednesday by the Commerce Department. U.S. corporations repatriated $294.9 billion in the first three months of 2018 and $183.7 billion in the second quarter.
The latest quarter’s total compares with $55.1 billion from the same period a year earlier -- before the tax law took effect. The tax overhaul signed into law by Trump last December gave companies incentives to bring money back to the U.S. by lowering the tax rate on repatriated profits.
The new rules set a one-time rate of 15.5 percent on cash and 8 percent on non-cash or illiquid assets. Companies pay the "deemed" tax whether or not they actually bring the assets back. Previously, firms had to pay the old 35 percent corporate rate, but only if they brought the money back to the U.S.
Trump has said, without specifying his source, that he expects more than $4 trillion to return to the U.S., which will help to create jobs and more investment.
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https://finance.yahoo.com/news/u-offshore-repatriated-cash-fell-133001066.html
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