Senate, United States, Congress discussed on World

KQED Radio
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Repatriation provision in the tax overhaul package that the republicans are proposing so there's about two point eight trillion dollars of these foreign profits currently booked offshore and the tax bills would say that we're going to subject them to a one time techs right now that tax rate is much much lower than the current 35 percent stecher tree right so in the senate it's a top rate of fourteen point five seemed for cash and seven point five percent for other types of investments republicans argue that the repatriation provision will help create jobs what do you think of that argument well we know that that's a promise that is unlikely to be a fruit because we've been through this before in two thousand and four congress enacted a cycle tax holiday which actually gave a text cut on those profits to lure companies back and multinationals repatraited more than three hundred billion and profits said a greatly reduced tax rate and there are multiple independent academic studies that showed that they didn't increase in basement doesn't increase jobs in fact the top fifteen repatriating corporations cut the us workforce's by twenty one thousand people and the three is after the holiday of all of this goes through what would happen to profits that are required after the ruling look would accompany the crew revenue and each them they want to bring the prophet home they'd have to pay another tax not only is it a problem that has been at discount at right on poss profits but the proposal is to transition to a system that would give up imminently lower right to any foreign profits that us multinationals make so the senate bill for example sits twenty percent corporate tax rate on us prophets but a rate of ten percent will lease on foreign profits so they will be the allowed permanent incentive to shift profits offshore the senate bill has set up a few different socalled god rails to try to prevent that the thing that's ironic about those god rails is that it actually creates new incentives to shift real operations offshore zhiqian the lower tax rate you'll not subject to this minimum ten percent tax on foreign profits if the profits of from manufacturing offshore the.

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