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Foreign official reserves are only down about the 300B they disappeared from Russia a year ago:
https://ticdata.treasury.gov/Publish/mfh.txt
The rest is just repatriation of USD reserves by US multinationals due to the Trump tax cuts which iirc allowed a 5 year transition to qualify for the tax cuts..
US multinationals no longer have to keep the offshore USD retained earnings in foreign banks to avoid the taxes…
“ Section 965 imposes a transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated. A mandatory tax of 15.5 percent on post-1986 accumulated foreign earnings held in cash or cash equivalents and an 8 percent mandatory tax on post-1986 accumulated foreign earnings held in liquid assets is imposed. The transition tax generally may be paid in installments over an eight-year period.”
This is what the TIC accounting is illustrating… it’s going to the TGA…
4 comments:
Not as catastrophic as we keep hearing on the MSM.
Foreign official reserves are only down about the 300B they disappeared from Russia a year ago:
https://ticdata.treasury.gov/Publish/mfh.txt
The rest is just repatriation of USD reserves by US multinationals due to the Trump tax cuts which iirc allowed a 5 year transition to qualify for the tax cuts..
US multinationals no longer have to keep the offshore USD retained earnings in foreign banks to avoid the taxes…
It was 8 years:
https://www.irs.gov/newsroom/tax-cuts-and-jobs-act-a-comparison-for-large-businesses-and-international-taxpayers
“ Section 965 imposes a transition tax on untaxed foreign earnings of foreign subsidiaries of U.S. companies by deeming those earnings to be repatriated. A mandatory tax of 15.5 percent on post-1986 accumulated foreign earnings held in cash or cash equivalents and an 8 percent mandatory tax on post-1986 accumulated foreign earnings held in liquid assets is imposed. The transition tax generally may be paid in installments over an eight-year period.”
This is what the TIC accounting is illustrating… it’s going to the TGA…
AAPL alone had 300B stashed in Ireland…
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