As Congress gets ready to tackle a new major legislative item on President Donald Trump’s agenda this fall, one billionaire investor believes Trump’s proposed tax plan will boost the economy by incentivizing U.S. companies to stop holding profits offshore.
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“Two trillion dollars offshore belong to Apple and various other people, offshore because it would otherwise get taxed at 35% doesn’t make any sense. That money should be back in the United States. Should be promoting and helping our society and we shouldn’t have the equivalent of punishment for making money offshore and bringing it home. Do I think that’s likely to change? Yes,” Sam Zell told Fox Business’ Maria Bartiromo of Wall Street Week.
One way the Equity Group Investments founder believes Trump can bring those profits back to the United States is by lowering the corporate tax rate, something he believes has a good chance of amassing a majority of support in Congress.
“Lowering the corporate rate from 35 to 15 and 20 likelihood, high. Why? Because 35 is the highest rate in the world and makes no sense for the U.S. to have corporate interest rates higher than everywhere else in the world. So the chances of that kind of a change, I think are significant,” he said.