The Laffer Curve is a theory developed by supply-side economist Arthur Laffer to show the relationship between tax rates and the amount of tax revenue collected by governments.
The curve is used to illustrate Laffer's argument that sometimes cutting tax rates can increase total tax revenue.
You see Trump's 2017 tax reform is delivering on its promise to bring money back to the US from overseas by making America more competitive.
This history making law lowered the corporate tax rate from 35% to 21% and it also allowed US companies to bring money home from their foreign subsidiaries at the much reduced US tax rate.
The adverse U.S. tax rules, coupled with low foreign tax rates and territorial tax systems, made it advantageous for the companies to shield non-U.S. income from the reach of the U.S. tax system by becoming incorporated and headquartered overseas.
"The 2017 tax reform changed that. Representative Kevin Brady, who led the congressional battle for tax reform as Chairman of the House Ways and Means Committee, said following the announcement of the AbbVie-Allergan transaction that, as a result of 2017 tax reform, 'companies can domicile here and stay competitive throughout the world.'‚".
"So how is this working today? According to Investor's Business Daily,"They said it wouldn't happen, but it did: The money companies stashed overseas to protect them from high U.S. corporate tax rates is flooding back in, boosting growth, jobs and confidence in the economy.
https://canadafreepress.com/article/show-me-the-money
The curve is used to illustrate Laffer's argument that sometimes cutting tax rates can increase total tax revenue.
You see Trump's 2017 tax reform is delivering on its promise to bring money back to the US from overseas by making America more competitive.
This history making law lowered the corporate tax rate from 35% to 21% and it also allowed US companies to bring money home from their foreign subsidiaries at the much reduced US tax rate.
The adverse U.S. tax rules, coupled with low foreign tax rates and territorial tax systems, made it advantageous for the companies to shield non-U.S. income from the reach of the U.S. tax system by becoming incorporated and headquartered overseas.
"The 2017 tax reform changed that. Representative Kevin Brady, who led the congressional battle for tax reform as Chairman of the House Ways and Means Committee, said following the announcement of the AbbVie-Allergan transaction that, as a result of 2017 tax reform, 'companies can domicile here and stay competitive throughout the world.'‚".
"So how is this working today? According to Investor's Business Daily,"They said it wouldn't happen, but it did: The money companies stashed overseas to protect them from high U.S. corporate tax rates is flooding back in, boosting growth, jobs and confidence in the economy.
https://canadafreepress.com/article/show-me-the-money
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