NYT Dealbook points to a how the 2 trillion dollar overseas money can come “home” and how money is spent. 2005 comes to mind the last time repatriation of “overseas money” comes to mind.
The Overseas Cash Grab (from Dealbook)
Corporate chiefs in the United States have bemoaned for years the taxes that they would face if they brought home more than $2 trillion in cash kept overseas.
They may soon stop complaining. President Trump and the Republican-controlled Congress are widely believed to be open to lowering taxes on funds that companies bring back.
For lawmakers, the idea of a tide of funds coming home creates visions of infrastructure investment and job creation. But on Wall Street, it has set off hopes for another spending priority: mergers and acquisitions. And deals often lead to job losses.
The differing visions come amid a broader debate about whether cutting taxes spurs investment or leads to higher incomes and more jobs.
Among other things, there are questions about the ways people respond to lower taxes. If your tax is lowered, would you strive to be more productive at work? Or would you take advantage of a higher income that came at no extra effort?
Either way, the more pressing issue may be at whether a tax overhaul can happen at all.