Political decisions taken by US President Donald Trump always spark controversy and arouse a lot of questions. Nevertheless, this successful entrepreneur is highly sophisticated in terms of economics and finance. Recently, the president has called for the repatriation of a whopping $4 trillion back to the US. This huge amount is Donald Trump’s estimate of the US capital kept overseas.
The US President is frequently targeted for his impulsive decisions when he states crucial things without thinking about what will happen later. He revealed this odious feature during the presidential race. The thing is that American companies are keen to avoid paying high domestic taxes, so they are holding big money in tax shelter countries. Donald Trump invented a tax reform to induce US firms to repatriate that money. The main obstacle for Trump’s tax reform is the Senate rules. Besides, it has to be approved by Congress. Neither Congress nor the Senate is willing to make amendments into the law. To sum up, there is almost a zero chance of reaching an agreement between Mr. Trump and the US lawmakers.
Interestingly, the top companies in terms of overseas holdings are Apple, Pfizer, Microsoft, General Electric, and IBM according to a survey from the Institute on Taxation and Economic policy.
