Replies to post #216086 on 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.

[Johnny_C]

Good post, what stock was that on. Even though the amounts are slightly higher they are possibly at the positive tipping point to benefit US because there is also alot of expenses and BS trying to use foriegn countries according to my pharma friends that are financial execs.

This should be great.