The ongoing myth is tax changes will ripple through the economy leading stronger growth and investment.
Trapped Funds Myth
Supposedly, Trump’s tax changes and cash repatriation holiday will release funds trapped overseas and spur corporate investment, possibly to the point of overheating the economy.
The Reality
The reality is the cash is not overseas, and it’s not really in cash form.
Investment boom? Forget about it.
“Trapped overseas profits” are neither overseas nor trapped. https://t.co/Sc5XscR91W
— John P. Hussman (@hussmanjp) August 27, 2017
Kitty Richards and John Craig debunked the “trapped funds” myth back in 2014 in Offshore Corporate Profits: The Only Thing ‘Trapped’ Is Tax Revenue.
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