The nation’s high-flying tech giants would get a huge windfall under the Republican tax plan, but economists say the companies are more likely to reward shareholders with dividend hikes and stock buybacks than in directly creating U.S. jobs.
A plan approved by the House, and a separate proposal before the Senate, both lower tax rates on foreign profits that subsidiaries of U.S. companies bring home.
A significant portion of the $2.5 trillion or so that U.S. companies hold offshore belongs to high-tech firms.
“I don’t really think this is going to have much of an impact on jobs in the United States,” said Eric Toder, an economist and co-director of the extreme left-wing Tax Policy Center.
The White House offers an opposing view, maintaining the plan would lead to more jobs and production in the United States.