New Study Finds Corporations Hiding Even More Money Offshore As GOP Cuts Their Taxes

Donald Trump, Paul Ryan

A new study shows that the GOP tax cuts aren’t necessary since so many more corporations are hiding their money offshore.

“The new corporate tax cuts are unlikely to stimulate the level of job creation and wage growth that the Trump administration has promised, a trio of prominent economists has concluded, because high tax rates were not pushing much investment out of the United States in the first place.

Instead, the researchers conclude, multinational corporations based in the United States and other advanced economies have sheltered nearly 40 percent of their profits in tax havens like Bermuda, depriving their domestic governments of tax revenues and enriching wealthy shareholders. That number suggests a jarringly large amount of what appears, to policymakers, to be investment pushed abroad by high tax rates is instead an accounting trick — so-called paper profits — which tax cuts will not reverse.” [READ MORE]

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