Friends of Manufacturing

New Tax Rule Threatens Jobs In America (


Why does this matter? The changes would raise costs for most U.S. companies competing globally and would actually make it more difficult to repatriate cash for investment in the United States. Consider a U.S. global manufacturer that plans to bring back cash from one of its overseas subsidiaries. It plans to use the funds to build plants, update equipment and purchase materials in the United States. Under the proposed rule, the repatriation will trigger a chain reaction, restructuring balance sheets, distorting profit reporting and potentially increasing tax liabilities. Given this new constraint, companies in similar situations might be less likely to make new investment in the United States, hurting job creation and our broader economy.