Something really big happened last week that no one in the mainstream media wants to report. Economically, it was as big as the peace deal with North Korea. There is a reason those on the Left want to keep people in the dark. The U.S. economy is trumping previous records at a rocket pace. Pun absolutely intended.
According to a report from the U.S. Bureau of Economic Analysis (BEA), for the first quarter of 2018, over $305 BILLION were repatriated back into the U.S. economy, a record! That number is more than six times what it was during any given quarter from 2009 through 2017 (when someone else was president) where it never exceeded $50 billion.
What changed? Our tax code, that's what. A policy change with the tax rate charged to U.S. corporations caused the massive flow of overseas investment dollars to return to U.S. soil. It's a funny thing when you remove barriers to companies making money, also known as punitive taxes.
From the Bureau of Economic Analysis: "The tax law also changes the nominal domestic corporate tax rate from 35 percent to 21 percent beginning with the first quarter of 2018."
Follow along. Stay with me. The tax rate on corporations was reduced by 14 percent starting in the first quarter of 2018. In that first quarter, over $305 billion came in from these corporations, a number over six times what it ever was before. See how that works?
There's even good news in here for Leftists. That $305 billion will generate approximately $64 billion in tax revenue for their unicorn-driven government programs and rainbow-fueled dreams. Or, it could buy some really cool ships, missiles, and planes if you're inclined in that direction. Maybe Immigration and Customs Enforcement could use it to upgrade their child detention facilities adding swimming pools and video games for the children of Mr. and Mrs. Illegal after they are caught sneaking across our border.
This graph from the same report by the BEA will blow your mind.
Here's what this means. The orange line is the money that U.S. corporations repatriated back to the United States, meaning that it was brought back into the country. This is a GOOD thing. The blue line represents earnings by U.S. corporations overseas that were reinvested in facilities overseas. In other words, there was $175 billion in earnings that were NOT reinvested outside of the U.S.
Translation, the U.S. benefitted. Again, this is a GOOD thing.
And a reminder: all of this started during the first quarter of the Republican tax cuts. Coincidence?
A hearty "Good job!" goes out to the mainstream press for deflecting to the "kids trapped in cages" issue, because getting this information out spells disaster for those who voted against it.