The new tax bill was aimed towards moving manufacturing back into the U.S., but some parts of the bill might lead investors to first consider overseas manufacturing.
In an article from CNBC, author Patti Domm writes, “The new tax bill was supposed to put America first as a destination for manufacturing, but one unintended consequence of the legislation means some U.S. multinationals may see an advantage in adding facilities in foreign countries”.
In the article, Domm discusses:
- New tax rules
- Tangible depreciable assets
- The U.S. having a lower tax rate
The article continues, "I would argue the incentive is greater for them to stay or bring [investment ] back to the U.S.," said Joseph LaVorgna, chief economist, Americas at Natixis”. How is your manufacturing company going to be impacted by the new tax bill?
To read more, see the full article from Patti Domm in CNBC.