Major US multinationals push US Government to further deepen the tax break on corporate profits being held offshore. Some of the lobbyists said that in order to bring their corporate profits to the US, they need a sharply reduced tax rate even below the recently proposed reduction to 10 percent, Reuters reports.
According to Reuters who communicated with the six of the lobbyists, the US administration works with lobbyists for various industries including technology and drugs behind closed doors. The lobbyists said that they need "a sharply reduced tax rate." "For us, it’s how you create a tax environment where you give business long-term certainty," one lobbyist said.
Trump proposed a deemed repatriation at a 10% rate for cash and 4% for earnings not represented by cash. The lobbyists said they want a lower, bifurcated rate of 3.5 percent on earnings already invested abroad in illiquid assets, such as factories, and 8.75 percent on cash and liquid assets. Lobbyists also said there has been discussion about limiting that exemption to 95 percent of repatriated foreign earnings, Reuters reports.
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