But buried on page 142 of the 2017 Tax Cuts and Jobs Act is Section 965. And it’s sparking huge “Liberty Check” payouts.
Only corporations and accountants pay attention to Section 965. That’s because it deals with the treatment of deferred foreign income.
Most regular folks ̶ like you and me ̶ don’t have “deferred foreign income.” So, we completely ignore this portion of the Tax Cuts and Jobs Act of 2017.
But that’s a big mistake.
Because Section 965 is paving the way for billions in special Liberty Check payouts to ordinary Americans. Let me explain.
Section 965 of the law requires that U.S. corporations pay taxes on all “offshore cash.” This is money that they’ve squirreled away in offshore tax heavens like the Cayman Islands and Luxembourg.
For decades, corporations and their accountants have used legal loopholes to hide their profits. They do so by setting up foreign subsidiaries and licensing intellectual property to these foreign affiliates.
They’re then able to book a portion of these profits as “foreign earnings.” And over the years, the earnings have accumulated.
Apple (NASDAQ: AAPL) is the biggest offender. The company how as total of $261.5 billion in cash. And 94% of that money is held offshore.
Of course, Apple isn’t the only one. Cisco Systems (NASDAQ: CSCO) has $70.5 billion in cash. Microsoft is at $138.5 billion. And Johnson & Johnson (NYSE: JNJ) is sitting on $41.9 billion. More than 90% of this cash is stashed overseas.
Section 965 requires that companies pay a 15.5% tax on earnings that have been held overseas. That means companies will pay the tax, whether they keep their money in the Caymans or bring it back into the U.S. They’ll be taxed either way.
Many corporations are electing to bring the cash back into the U.S.
Once that cash comes back into the U.S., many corporate executives are electing to pay it out.
These new Liberty Checks could transfer billions of savings from corporate balance sheets to regular Americans.
Our research indicates a new wave of Liberty Check payouts in the coming weeks . . . including the next payout on April 27.
These payouts could total $3,360 per person – and potentially much, much more.
Yours in Profits,