Overview
Law360 quoted Steptoe Chair Phil West in an October 26 article titled “Goldman Sachs Predicts 25% Corporate Rate in Tax Proposal.” The article explains why, according to a Goldman Sachs report, draft tax reform legislation will likely introduce a 25 percent corporate rate and a territorial system with a minimum tax of 12 percent to 15 percent. The report says a 10 percent tax on deemed repatriation of untaxed offshore cash earnings and a four percent tax on earnings reinvested abroad were expected to generate about $160 billion in revenue. According to the article, the Goldman Sachs report seems to acknowledge that the provision likely wouldn't increase the number of US jobs created, noting that unrepatriated earnings are already largely available for domestic activities.
Mr. West says the report, in doing so, admits that “one of the major predicates for repatriation is not really there, which is that there’s this lockout effect that’s been a barrier to creating US jobs.”
The full article can be read at Law360 (subscription required).