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Profits of US firms belong in US: Trump's tax plan aims to bring back funds

Trump said his tax plan will give firms a chance to bring back the funds from abroad and spend it US

Press Trust of India  |  Washington 

Donald Trump
Donald Trump

President Donald has said that he would bring in a new regime in the US that will induce American businesses to bring back trillions of dollars stacked abroad.

"We must bring back trillions of dollars in wealth that's parked overseas, and just can't come back. Our system penalises companies that bring wealth they have earned overseas back to America," he said while addressing an audience in the US state of North Dakota yesterday.

He said due to the current system "corporations have parked trillions of dollars in foreign countries, money that could be and should be brought back into the United States, where it can be invested in American companies and American jobs".

said his plan will give these companies a chance to bring back the funds from abroad, and spend it in cities and towns all across the country.

"The numbers we're talking about are probably between $3.5 trillion and $5 trillion that cannot come back into our (country)," he said.

"We're going to be switching from a worldwide system that encourages companies to keep their funds offshore, to a territorial system that encourages companies to bring their profits back home to America, where that money belongs," he said.

Asking people to support hi reforms, he said this is a "once-in-a-generation opportunity" and to rebuild the American economy.

"History has proven time and time again that there is no power on Earth more awesome and unstoppable than the will of the American people. You saw that on November 8th, believe me," he added.

The president said the US business rate is the highest in the developed world, 60 per cent higher than its foreign competitors.

"(This) puts us at a big disadvantage. We're behind France, behind Germany, behind Canada, Japan, Ireland, Mexico, behind South Korea. We're dead last. Our high business is nothing more than a crushing on every product made in We have totally surrendered our competitive edge to other countries," he said.

said that his government is going to reduce the rate on American businesses so they can keep the jobs in the country, which would create employment, higher wages and greater profits.

The administration will no longer have to accept a code that lets special interests win at the expense of the middle class, he said.

"We no longer have to accept a rigged system. You know all about rigged systems. We talked about that plenty times in the campaign. You think anything is so different? But we're going to make a difference. We're going to get that straightened out too," he noted.

"That rewards companies for shipping jobs overseas and punishes them for investing in They actually get punished under the code for investing in our country. It's all going to change. We can heal this self-inflicted wound and we can reestablish our economic dominance all over the world," said.

First Published: Thu, September 07 2017. 09:48 IST