Officials hope American corporates will bring profits home

Washington

THE sweeping tax cuts adopted on Wednesday by US lawmakers, while reducing rates on corporations, also aim to encourage multinational businesses to repatriate huge earnings amassed abroad.

US corporations, notably in the tech and pharmaceutical sectors, have for years accumulated profits offshore to avoid the comparatively high US tax rates of 35 per cent, although most companies in reality pay much less.

The stockpile of cash now stands at about US$2.5 tril…