In the wee hours of Saturday 2nd December the US Senate passed a bill to cut corporate income taxes (taxes on company profits – what the British call corporation tax) from 35 percent to 20 percent. Companies will also be allowed to repatriate their foreign profits at a discounted tax rate. So that could mean that a substantial part of those corporate cash piles held by the likes of Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) which currently reside offshore will be repatriated to the USA. The bill was passed by 51 votes to 49. Those senators opposing the bill did so largely on the ground that, by the Senate's own estimate, it will add an additional $1 trillion to the national debt over the next ten years. |
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