GENEVA: US President Donald Trump’s tax reform could bring almost $2 trillion back to the United States as US firms repatriate cash piles from foreign affiliates, a UN report said on Monday. Ending the incentive to hoard cash overseas could produce a stimulus effect in the US, and Trump has credited the tax reform with spurring a $350 billion investment plan by Apple. “Now is the perfect time to bring your business, your jobs, and your investments to the United States of America” Trump told the World Economic Forum last month. The reform ends a system whereby companies defer tax on foreign earnings until the funds are repatriated. Instead it treats those earnings as if they were being repatriated, with an 8% tax on non-cash assets and a 15.5% tax on cash. “This measure is widely expected to have the most significant and immediate effect on global investment patterns,” said the report by the UN trade and development agency UNCTAD.
Published in The Express Tribune, February 6th, 2018.
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