proven redumbliCON lies from previous tax shills. The debt isn't going to increase by 1 trillon; it will increase by over 2 trillion in providing corporate and wealthiest welfare. This is the craziest thing that has ever been concockted by our corrupt Congress.

in fact, there are ways to effectively make use of that money here in the u.s. without paying taxes here.

already, even companies like apple, which has more cash than croesus, actually *borrows* money here in the u.s. to do things like pay dividends to investors.

so what will it mean if they actually repatriate all the money and pay a lowered tax rate on it?

not much. they were turning the money over to investors, whether via dividends or stock buybacks, they were just borrowing to do it. now, they'll just do the same thing with actual cash instead of having to borrow. it won't change things much for investors other than that the corporate borrowing costs will go down very slightly (the interest costs involved are very low).

what will happen is that a whole lot of cash will leave places like europe, which has a rather more precarious economy than ours. should this move push them into recession, that will in turn have a negative effect on our economy. i don't think that scenario is all that likely, but it will in any event put a big of a drag on their growth, which, again, harms us in turn.

all in all it's a very, very stupid idea. handing money to rich people and corporatation at a time when there's plenty of investment capital available and the economy is growing and at effectively full employment?

completely idiotic, and i haven't even touched on the distribution of wealth issue.

excellent points!

. . .is that a lower tax rate will make them repatriate the money. THEY'RE PAYING ZERO TAXES NOW! No matter how low the new rate is, what motivates them to go from ZERO to anything greater than zero.

The excuse for this tax plan doesn't make sense even on the most fundamental level.

There is no law that provides tax breaks for moving the money overseas. Simple the money is "earned" in a foreign country, under a foreign corporation. As it exists now, that money never touches any US oversight.

Also, the profits are NEVER moved back to America. They are simply spent overseas - on foreign employees, buildings and other foreign assets.

They could however, put a tariff on the products as you suggest. Nothing at all stopping Congress from slapping say a 100% tariff on all iphones for instance.