A key selling point of the 2017 Tax Cuts and Jobs Act (TCJA) in the U.S. was that it would discourage multinational corporations from funneling billions in profits to offshore tax havens, bringing that money back to the U.S. where it could create jobs and boost economic growth.
Nevertheless, a recent study, co-authored by Petr Janský and Javier Garcia-Bernardo (Charles University, Prague) and Gabriel Zucman (University of California, Berkeley), concludes that the TCJA has failed to stop the outflow of corporate profits abroad and has had little impact on the share of foreign earnings that U.S. companies have taxed in tax havens such as Bermuda and Ireland.
From 2015 to 2020 — the years before and after the law took effect — that share held steady at about 50%.
You can find more details in an article by CBS News.
Autor - Barbora Holková