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Could Major Companies Lose Big After Repatriation?

October 2, 2017
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In keeping with his strategy to bring money back to America, the Trump administration is set to go forward with its plans to repatriate foreign cash. CNBC says:

Gary Cohn, the chief economic advisor to President Donald Trump, said the tax reform plan the administration supports seeks to bring back what could be $3 trillion in offshore wealth, but at a reasonable rate.

That “reasonable rate” is supposed to be withing the realm of 10% according to Cohn. CNBC explains that those numbers are well within the expected rates. This should allay any fears of major declines in stock performance for the companies that are implicated.

The plan to get money back into the United States has the potential to increase investment in America. The President hopes that such a move will allow more jobs to be created in the United States rather than abroad, a central component of his platform.

This is a major part of Trump’s economic strategy going forward. If there are any hiccups with the deal, it would be a significant setback to what has already proved to be a rocky road to tax reform. Investors should follow the negotiations to see if there is any sort of deviation from the expected rates. Any such changes could have an effect on the markets

To read CNBC’s article on corporate repatriation, click here.

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