The Tax Cuts and Jobs Act encouraged the repatriation of profits, which had been subject to additional U.S. levies after it was brought home.

In response to the Trump tax cuts, there was a Dramatic Rise in Corporate Cash Brought Home in 2018.

>In the first quarter alone, multinational enterprises brought home about $300 billion of the $1 trillion held abroad, according to a recent Federal Reserve study. A good chunk of that repatriated money went to share repurchases — for the top 15 cash holders, some $55 billion was used on buybacks, more than double the $23 billion in the fourth quarter of 2017.

Tax Cuts and Jobs Act

The repatriated cash is highly unlikely to create many jobs. Most of it will eventually go to buybacks and dividends.


Goldman Sachs expects that the total buybacks from all companies in 2018 could exceed $1 trillion.

There's Nothing like throwing $1 trillion into an already insanely overvalued market.

Corporations apparently have nothing better to do with the cash. Executive stock options, not shareholder interests, are in play.

Mike "Mish" Shedlock

Record Buybacks at Worst Possible Time

JPMorgan estimates $800 billion in buybacks this year, a new record. Companies will squander money in an obvious bubble.

Buybacks Announcements Spike: Shareholders, Not Workers Get Tax Break

A spike in share buyback and special dividend announcements reveals that companies will not use tax cuts for investment.

Buybacks and Dividends On Record $Trillion Pace

At the current pace, 2018 will mark the first year that corporate buybacks and dividends top the $trillion mark.

Trapped Funds Myth: Foreign Cash Repatriation Boom in Reverse

The ongoing myth is that tax changes will ripple through the economy leading stronger growth and investment.

Trump's $54 Billion Tax Hike on Autos: EU Threatens $300 Billion Retaliation

The EU is poised to retaliate against Trump. The Financial Times editorial board endorses the idea.

Tesla Begs Suppliers for Cash Back on Prior Orders: WTF?

In an unprecedented act of desperation, Tesla is asking for "meaningful" cash back, not on future orders but prior ones.

Where’s the Cash?

With the mad scramble of Citigroup (C), Ambac (ABK) , MBIA (MBI) and other corporations to raise cash, and with banks reluctant to even lend to each other overnight, inquiring minds just might be asking Where the Heck Is all the Cash?

Firms Spent 94% of 2004 Tax Holiday Benefit on Buybacks and Dividends

A study of the 2004 repatriation holiday shows 94% of the money did nothing to create jobs.

More Sideline Cash Nonsense From Bloomberg and Merrill Lynch

Bank of America analysts claim to have discovered a new source of corporate bond buying: High net worth individuals holding piles of cash. The analysts say there is "plenty of pent-up demand". In reality, neither the Bloomberg writer nor the BoA analysts understand how markets function.