Brown says this consistently on the campaign trail and it’s just not true. In fact, we expect higher tax revenue because of this new provision.
From Brown’s Op-Ed: “Under their law, companies earning profits in Hamilton County pay a 21 percent tax rate. But if those companies send jobs to Wuhan, China or Reynosa, Mexico, they owe just a 10.5 percent rate on some of those overseas profits. It’s like handing out 50 percent off coupons to corporations that send jobs overseas.”
· Before the Tax Cuts & Jobs Act, companies that moved jobs overseas were paying 0% U.S. tax after planning. It was a loophole that large, multinational corporations used to avoid paying the high US corporate tax rate.
· Now, thanks to a new provision known as GILTI, they’re paying 10.5%. That’s revenue that was not getting taxed under the old law. (Cite found in Table 1, second row)
· In other words, it was a provision that closed a tax loophole and ended up being a tax INCREASE on these companies – not a cut. As a matter of fact, the Joint Committee on Taxation estimates this tax will bring in $112.4 billion in NEW revenue between 2017 and 2027. That’s new revenue that wasn’t coming in under the old law. (Cite found on page 7)