More data showing Tax Cuts failed

transporter

Well-Known Member
The Trump Tax Reform, As Seen in the U.S. Balance of Payments Data
“Trillions of dollars in trapped profits will return to the United States”*

“With a lower tax rate, U.S. firms will no longer have an incentive to offshore.”**

“The tax cuts will make America a more competitive location for manufacturing.”***

I have heard all three arguments, in various forms.

All three claims can now be evaluated against the numbers—we now have five quarters of post-tax cut data.

All three arguments, in my view, come up short.

All of these were parroted on here.....
...

And it turns out that the firms were much keener on settling their deferred tax liability at a low rate than in legally moving the funds back to the United States.

...

Substantively, what really matters is whether the new tax code got rid of the incentive for firms to “offshore” a large portion of their profits.

And the answer is clear.

It didn’t
.

As was expected.
...
For now, though, the size of the offshore profit U.S. firms report to earn in a small number of tax havens remains the single best way of tracking the distortions embedded in the current U.S. and global system of taxing corporate profits. And it isn't telling a very patriotic story.

As also was expected.
 

Kyle

ULTRA-F###ING-MAGA!
PREMO Member
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