One Sentence in the GOP Tax Plan Has Multibillion-Dollar Implications
- ‘Appalling’ idea would target profit-shifting to tax havens
- One word -- ‘global’ -- signals companies may keep some leeway
What Investors Say About the Odds of Tax Reform
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On the last page of a nine-page tax plan that calls for slashing business rates, President Donald Trump and congressional Republicans proposed a little-noticed, brand-new tax that may hit companies like Apple Inc. and Pfizer Inc.
It’s contained in one sentence: “To prevent companies from shifting profits to tax havens, the framework includes rules to protect the U.S. tax base by taxing at a reduced rate and on a global basis the foreign profits of U.S. multinational corporations.” The rate and formula aren’t specified, but that lone sentence carries multibillion-dollar implications for multinationals. Their lobbyists are noticing.