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Originally Posted by mooby
This is a really good explanation Schneed, my only concern is that as long as it remains profitable to run sales through Ireland for example, it doesn't matter how low our corporate tax rate is. Hiding profits offshore will always happen as long as there is more to gain financially than paying the way it's supposed to be.
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That would be true, assuming anybody can just incorporate in Ireland and move everything there. It’s not that simple though, otherwise everyone would be there now. In order to get to Ireland most firms have had to buy an Irish company and merge into that address. Easier said than done.
Some are in China, some in Ireland, some in every nation. Those where the tax rate is above 21 percent (China 25%), those firms are incented to move their base and IP back to the US immediately.
Others, like Apple in Ireland, will certainly stay abroad. That’s why Trump sounds too optimistic. But it will still make a very positive impact, even if not as yuge as Trump likes to think.