Posted by on
Categories: Microsoft

President Donald Trump’s tax reform could give U.S. corporations access to trillions of dollars stashed overseas. #Microsoft (NASDAQ:MSFT) could be the biggest winner in the shakeup. Last quarter, the tech-giant reported it was sitting on $123 billion in cash. Of this total, more than 95% is abroad. Shareholders have longed hoped the company would tap these holdings, sparking a wave of dividends and buybacks. The problem with this plan, however, has always been the tax bill the cash repatriation would trigger from the IRS. Instead, management has opted to keep the money overseas, earning meager returns in money market funds. That might not be the case for long. During the election race, Trump proposed a tax holiday on overseas cash holdings. He called for cutting the levy that corporations pay on repatriated cash from 35% to 10%. This policy, he argued, would spark a wave of investment and job creation in the United States. “Donald J. Trump’s tax plan will increase the economy and grow jobs by almost 2 million, while Hillary Clinton’s tax plan will shrink the economy and lose 300,000 jobs.” Trump’s campaign team wrote in a press release describing its policy. “In combination with the total economic reform agenda, the Trump economic plan will create at least 25 million jobs over the next 10 years.”

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.