Biotech Values

[10nisman]

The tax bill is a pretty good outcome for US-based multinationals, IMO. The one-time tax of 8% or 15.5%* on cumulative ex-US profits is quite palatable insofar as: 1) It absolves US-based multinationals of US income-tax liability on all future ex-US profits; and 2) It allows ex-US cash to flow to the US parent company without additional tax liability.

Moreover, the tax bill allows the one-time liability for cumulative ex-US profits to be paid in installments, so it does not unduly affect earnings in any single year.

*The tax rate (8% or 15.5%) depends on whether cash from ex-US profits has been reinvested in fixed assets.

This is very similar to what was in House and Senate bills so this shouldn't be a surprise to MNC's/CFO's, etc. They can pay the liability over eight years.