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GOP Tax Plan Sets Higher Rate Than Expected on Offshore Earnings

Trading On The Floor Of The NYSE As Foreign Investors Return To U.S. Stocks
Photographer: Michael Nagle/Bloomberg

The top tax rate that U.S. companies would pay on an estimated $3.1 trillion in earnings they’ve stockpiled overseas crept up to 15.5 percent in the final version of the GOP tax bill released Friday.

President Donald Trump had initially called for a top rate around 10 percent for companies’ offshore profits, but as GOP lawmakers searched for revenue to offset the cost of other tax cuts, one of the sources they settled on was multinationals’ offshore cash.