The U.S. wants to be the new tax haven for tech giants
The new tax overhaul might allow the United States might be the next base of operations for American companies that make a significant amount of cash via their intellectual property, per The Wall Street Journal. Foreign-derived intangible income, the money that companies make overseas on U.S.-produced goods that utilize their IP, will be taxed at 13.125% through 2025 and 16.4% thereafter, down from a previous top rate of 35%.
Why it matters: Ireland's similar tax break on intellectual property, known affectionately as the "Double Irish," ends after 2020. Its lucrative tax structure lured companies like Facebook and Alphabet to set up shop in Dublin, and the U.S. hopes to bring that money back home.