Globe with Money

“Capital Goes Where It’s Welcome and Stays Where It’s well Treated” – Walter Wriston

Sep. 21, 2018
by Bob Adelmann

The quote most famously made by Walter B. Wriston, the former chairman and CEO of Citicorp and former chairman of Ronald Reagan’s Economic Policy Advisory Board, is the one quoted in the title. He passed away in 2005, long before Trump’s tax reform plan (and its tax holiday for foreign corporate earnings) proved it to be so by beginning to transform the U.S. economy. In the first six months of 2018, nearly half a trillion dollars have been repatriated by American companies holding profits overseas waiting for such a time as this. Taxed at just 15.5 percent instead of 35 percent, companies are now reclaiming their foreign capital and treating it with the respect it deserves, and the results are showing up everywhere.

Apple is already bringing the “vast majority” of its $250 billion in foreign cash (but only “over time” and not overnight). American technology giant Cisco has already brought back $70 billion, while Eli Lilly & Co. has repatriated $9 billion from overseas. United Technologies has moved more than $5 billion from its overseas accounts, while Walmart just announced plans to repatriate $5 billion in September alone to invest in its domestic operations.

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