Politicspoliticsrcw

Thu Dec 6, 2018, 03:34 PM

Trumps Tax Promise of Trillions Back to U.S. Fails to Materialize

• Morgan Stanley estimates show repatriated cash levels falling
• President said offshore profits would spur domestic investment

By Laura Davison
December 6, 2018, 11:56 AM EST

The amount of offshore cash U.S. corporations have returned home so far this year is just a fraction of what President Donald Trump had promised.

A Morgan Stanley report released Thursday estimates companies brought back from $50 billion to $100 billion in the third quarter -- which would bring the total repatriated back to the U.S. to as little as $514 billion, based on previously released figures for the first and second quarters from the Commerce Department. The tax overhaul signed into law by Trump in December gave companies incentives to bring money back to the U.S. by offering a one-time low tax on repatriated profits.

Key Insights

Even though companies are less restricted in moving their offshore profits under the U.S. tax overhaul, corporations, in aggregate, are choosing to keep earnings in their foreign subsidiaries, according to a team of Morgan Stanley analysts led by Todd Castagno.

Companies repatriated $294.9 billion in the first quarter and $169.5 billion in the second quarter, according to Commerce Department data.

“The sharp drop and trend trajectory is surprising -- and may require analysts and investors to rethink their near-term capital deployment and return expectations,” the note said.

MORE...

https://www.bloomberg.com/news/articles/2018-12-06/trump-tax-promise-of-trillions-back-to-u-s-fails-to-materialize?srnd=premium

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Reply Trumps Tax Promise of Trillions Back to U.S. Fails to Materialize (Original post)
RCW2014 Dec 6 OP
Virginia Vet Dec 6 #1
Carl Dec 6 #3
Independent.mind Dec 6 #4
uncledad Dec 6 #7
Carl Dec 6 #8
Independent.mind Dec 6 #9
Carl Dec 6 #2
Steelydamned Dec 6 #5
Independent.mind Dec 6 #6
wisbadger Dec 6 #10

Response to RCW2014 (Original post)

Thu Dec 6, 2018, 04:40 PM

1. Yeah, but what about her fucking e-mails?????

(I thought the lads deserved a break.)

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Response to Virginia Vet (Reply #1)

Thu Dec 6, 2018, 04:50 PM

3. Or maybe read the article and think about it in context of the time it covers.

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Response to Carl (Reply #3)

Thu Dec 6, 2018, 04:59 PM

4. How do you define "very shortly"?

Is it 1 year or less?
Is it 1 to 3 years?
Anything over that doesn't seem like "very shortly" to me.

“We expect to have in excess of $4 trillion brought back very shortly. Over $4 trillion] but close to $5 trillion, will be brought back into our country. This is money that would never, ever be seen again by the workers and the people of our country.”

President Trump statement to executives assembled at his golf course in Bedminster, N.J., in August.

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Response to Independent.mind (Reply #4)

Thu Dec 6, 2018, 05:36 PM

7. $ 4, 000,000,000,000 vs $518, 000,000,000

To simplify $4000 vs $518.

At that rate 7 - 8 years to recoup.

As no one is in a hurry to bring home the bacon, trump starts his third year, followed by the 2020 GE, chances are the next incoming President will have a bump up in the market built in.

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Response to Independent.mind (Reply #4)

Thu Dec 6, 2018, 05:36 PM

8. I am sure you will define any way needed to keep screeching "I HATE TRUMP!!!!"

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Response to Carl (Reply #8)

Thu Dec 6, 2018, 05:45 PM

9. You are the one screeching Carl

I merely asked a question about how you would deine an ambiguous statement and posted the statement in context.

Additionally I offered my thoughts on the definition “very shortly“ which certainly implies a shorter rather than longer period of time.

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Response to RCW2014 (Original post)

Thu Dec 6, 2018, 04:49 PM

2. 514 billion in one year and you are still bitching?

God,the silliness of TDS is astounding.

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Response to RCW2014 (Original post)

Thu Dec 6, 2018, 05:09 PM

5. Don't....

...they still have til 2025 to repatriate the money? Seems a bit premature to start the lowballing caterwauling just yet...

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Response to Steelydamned (Reply #5)

Thu Dec 6, 2018, 05:12 PM

6. No you only get your tax cut til 2025

Corps get it forever or until congress and the executive take it away from them.

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Response to RCW2014 (Original post)

Thu Dec 6, 2018, 07:13 PM

10. Many companies aren't into the new fiscal year

Yet. If you bring it in too soon you have to pay the blended tax rate.

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