President Trump’s “tax reforms” are a textbook case of trickle down, with 60% of the benefits going to the wealthiest 1%.
And, with Trump’s support, the Republican bills in the House and Senate will worsen the “trickle-out” that ships American investment and jobs overseas.
US-based corporations are sheltering more than $2.6 trillion offshore. Until and unless they move the money back (“repatriate”) to this country, these companies don’t have to pay a penny on these profits in US taxes.
The cost: a cumulative total of $70 billion in lost federal revenues. And a double-whammy: From 1999 through 2012 alone, multinationals wiped out 875,000 American jobs while adding 4.2 million overseas. All in all, multinationals have offshored about 14 million jobs, from manufacturing to technology and call centers.
Second, they’ll largely exempt foreign profits from US taxes forever, not just until they’re repatriated. Even after lowering the domestic US corporate tax rate from 35% to 20%, they’ll still be “yuge” incentives for transnational companies to move American factories, offices and jobs overseas to low-tax, low-wage countries – and keep them there.