by Aka 'How dumb is the left?' ...the new law requires charges in the near-term as foreign earnings face taxation and the value of deferred tax assets declines. Citigroup Inc. said it expects a hit of as much as billion, while Bank of America Corp. will take a billion charge and Credit Suisse Group AG is at risk of posting a third consecutive annual loss. The old tax regime allowed companies to defer U.S. taxes until they brought back earnings held abroad. Under the new law, U.S. companies’ overseas income held as cash would be subject to a 15.5 percent rate, while non-cash holdings would face an 8 percent rate. Companies can make the payments in eight annual installments. Goldman Sachs takes a one-time billion hit from the U.S. tax bill https://t.co/Ua2QNWlqHV
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aka 'How dumb is the left?'
...the new law requires charges in the near-term as foreign earnings face taxation and the value of deferred tax assets declines. Citigroup Inc. said it expects a hit of as much as $20 billion, while Bank of America Corp. will take a $3 billion charge and Credit Suisse Group AG is at risk of posting a third consecutive annual loss.
The old tax regime allowed companies to defer U.S. taxes until they brought back earnings held abroad. Under the new law, U.S. companies’ overseas income held as cash would be subject to a 15.5 percent rate, while non-cash holdings would face an 8 percent rate. Companies can make the payments in eight annual installments.
Goldman Sachs takes a one-time $5 billion hit from the U.S. tax bill https://t.co/Ua2QNWlqHV pic.twitter.com/BcFe8JXffw— Bloomberg Markets (@markets) December 29, 2017
Previous reports estimate that these earnings saved offshore at $2.5T, so a 15.5% tax on that would be about $400B. A straight-line realization of that over the 8 years would result in about a $50B annual rate of new taxes into the Treasury account.
If the firms choose to accelerate that then it may result in a short term windfall of deposits for the Treasury account.