KEEP MONEY IN TAX HAVENS ABROAD
Here’s more good news for corporations under Trump’s tax plan: It moves the United States to a territorial system. This means multinational companies will no longer have to pay U.S. taxes on money they claim to have earned abroad, no matter how low the foreign nation’s tax rate.
When that income is brought back to the United States, however, it’ll be taxed between 8 and 15.5 percent. Despite Trump’s “America First” rhetoric, this move will likely incentivize companies to keep their income in foreign tax havens rather than invest domestically.