Breaking Down the New U.S. Corporate Tax Law
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HBR IdeaCast
The first thing is a transitory thing, which is, corporations are going to be able to bring that money back, and they’re gonna have to pay a one-time tax; and it’s going to be around 15 percent for cash and maybe 8 percent for other kinds of assets they might have. The second piece of it is, we actually have a new tax called a BEAT, or the base erosion and avoidance tax, which is meant to say, if you are doing a lot of intrafirm transactions, and you’re buying services from related parties that are abroad that look like you’re, you know, roughly speaking, may be trying to get profits out of the United States, we’re going to have a 10 percent tax on that; and that is a huge new tax, and it raises a lot of money; but it basically just says, on these intrafirm transactions, we’re going to…