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BNA Quotes David Rosenbloom: GOP Plan to Bring Back Offshore Cash May Cause Headaches

April 19, 2017, Bloomberg BNA

Bringing back the estimated $2.6 trillion of deferred corporate earnings at a reduced tax rate is a key aspect of almost all U.S. proposals to overhaul the tax system.

There's strong consensus among policy makers about this one-time tax on companies’ offshore earnings, which would allow them access to the stashed cash while also giving U.S. tax revenue a one-time boost to pay for other aspects of a new tax plan—or for infrastructure improvements.

However, targeting true offshore cash piles rather than genuine foreign investments may prove to be a complex problem and an administrative headache, as it requires an analysis of what constitutes cash as opposed to other investment.

. . .

“If they need to monetize their foreign assets, they'll find a way to do that,” said H. David Rosenbloom with Caplin & Drysdale, who is also a professor at New York University School of Law. “I think drawing distinctions like that is just going to encourage all types of games.”

. . .

I think most sensible people would probably pay that price to get to a different system,” Rosenbloom said. “It's a totally different ballgame if it's another bridge to nowhere.”

For the full article, please visit Bloomberg BNA's website (subscription required).

Excerpt taken from the article “GOP Plan to Bring Back Offshore Cash May Cause Headaches” by Alex m. Parker for Bloomberg BNA.

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