How the Tax Plan Will Send Jobs Overseas
Companies are going to be able to save a ton of money by locating factories abroad.
Despite Donald Trump’s “America first” rhetoric, many suspected that the tax plan he would support would actually increase the incentives for U.S. multinationals to move both profits and operations overseas. I wrote about this inevitability a few weeks ago, before the details of the Trump-GOP tax plan emerged.
Now that the bill is advancing, it’s clear that things aren’t as bad as many feared. They’re worse.
As discussed in the previous piece, Trump administration economic officials argue that by lowering the corporate tax rate from 35 percent to 20 percent and moving to what is called a territorial system—mainly, companies pay taxes on foreign earnings only to the foreign nation where those profits are booked
