BNA Quotes David Rosenbloom: GOP Plan to Bring Back Offshore Cash May Cause Headaches
Bringing back the estimated $2.6 trillion of deferred corporate earnings at a reduced tax rate is a key aspect of almost all U.S. proposals to overhaul the tax system.
There's strong consensus among policy makers about this one-time tax on companies’ offshore earnings, which would allow them access to the stashed cash while also giving U.S. tax revenue a one-time boost to pay for other aspects of a new tax plan—or for infrastructure improvements.
However, targeting true offshore cash piles rather than genuine foreign investments may prove to be a complex problem and an administrative headache, as it requires an analysis of what constitutes cash as opposed to other investment.
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“If they need to monetize their foreign assets, they'll find a way to do that,” said H. David Rosenbloom with Caplin & Drysdale, who is also a professor at New York University School of Law. “I think drawing distinctions like that is just going to encourage all types of games.”
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I think most sensible people would probably pay that price to get to a different system,” Rosenbloom said. “It's a totally different ballgame if it's another bridge to nowhere.”
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Excerpt taken from the article “GOP Plan to Bring Back Offshore Cash May Cause Headaches” by Alex m. Parker for Bloomberg BNA.