According to the U.S. Department of Commerce American companies have repatriated more than a trillion dollars of their overseas profits since Trump’s “tax holiday” was announced in 2017. As part of his Tax Cuts and Jobs Act corporate profits held overseas would enjoy a one-time levy of just 15.5 percent tax on profits held overseas instead of the punishing 35 percent rate that existed prior.
As Walter Wriston, former chairman and CEO of Citicorp, famously said, “Capital will always go where it’s welcome and stay where it’s well treated.”
But forecasters at the Wharton School at the University of Pennsylvania weren’t impressed. They predicted “that TCJA (Trump’s Tax Cuts and Jobs Act of 2017) will raise [just] $254 billion in revenue over the next ten years.” Instead, Trump’s tax law raised four times that amount in just two years.