Imagine that, the billionaire businessman was right again about his prediction for the economy.
President Trump said his tax cuts act would bring trillions back into the United States from overseas, and according to a new Bloomberg report he’s already crossed the $1 Trillion mark and counting!
Here's more on the story, from Bloomberg:
Corporations have brought back more than $1 trillion of overseas profits to the U.S. since Congress overhauled the international tax system and prodded companies to repatriate offshore funds, a report showed Thursday.
Even so, the total remains well short of the $4 trillion President Donald Trump said would return as a result of the 2017 tax law. The flow rose to $95.3 billion in the third quarter from a downwardly revised $70.4 billion in the previous three months, according to Commerce Department data, reaching a total of $1.04 trillion since the end of 2017.
Investment banks and think tanks have estimated that American corporations held $1.5 trillion to $2.5 trillion in offshore cash at the time the law was enacted. Before the overhaul, companies were incentivized to keep profits overseas because they owed a 35% tax when bringing it back and could defer payment by keeping funds offshore. The law set a one-time 15.5% tax rate on cash and 8% on non-cash or illiquid assets.
The repatriation figures were included in the quarterly report on the current-account deficit, which narrowed by $1.1 billion to $124.1 billion in the July-to-September period. The gap is considered the broadest measure of international trade because it includes income payments and government transfers.