Trump said tax cuts would bring $4 trillion back to America. Just 3.5 percent of that has returned.
President Trump said last year that more than $4 trillion in foreign profits would return to the U.S. as a result of the GOP tax reform that was passed in December 2017. So far, just $143 billion has been repatriated, The Wall Street Journal reported Monday.
The Republican tax bill eliminated taxes for U.S. companies that bring home profits made abroad. Some companies have said the tax prevented them from repatriating those profits because they wanted to avoid that additional cost. "We expect to have in excess of $4 trillion brought back very shortly," Trump said last year. "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."
But an analysis by the Journal found that the new one-time tax on foreign profits and removal of future federal taxes hasn't led to a sudden boom in repatriations. Out of the 108 public companies that hold the vast majority of an estimated $2.7 trillion in foreign profit, just a handful have made substantial efforts to bring money back to the U.S.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
While repatriations are much higher this year, The Daily Beast notes that the rate so far is just 3.5 percent of what Trump predicted. Companies have announced plans to repatriate an additional $37 billion, still falling well short of an amended $3.9 trillion prediction from the White House. The majority of foreign cash returned to the U.S. has gone toward share buybacks rather than investments, the Federal Reserve found. Read more at The Wall Street Journal.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Summer Meza has worked at The Week since 2018, serving as a staff writer, a news writer and currently the deputy editor. As a proud news generalist, she edits everything from political punditry and science news to personal finance advice and film reviews. Summer has previously written for Newsweek and the Seattle Post-Intelligencer, covering national politics, transportation and the cannabis industry.
-
Ports reopen after dockworkers halt strike
Speed Read The 36 ports that closed this week, from Maine to Texas, will start reopening today
By Peter Weber, The Week US Published
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published