To say the political landscape in the United States is tumultuous right now might be the understatement of the year. Even with one party controlling both the Executive and Legislative branches of the government, the party in power has shown little ability to get anything done on their own stated agenda. However, there is one glaring opportunity that most politicians will not be able to resist, and that’s the chance to overhaul or at least impact the U.S. tax system.
Lowering taxes is typically a very popular measure for most politicians, and both major U.S. political parties will want in on the action. Beyond the obvious lowering of taxes across the board, there is a ‘Golden Parachute’ of sorts being dangled out to U.S. Corporations – which is a onetime exemption to bring cash and profits back the United States with minimal tax exposure. When that happens (which we predict it will), the implications for Banking and Financial institutions with offshore presence will go far beyond the Panama Papers.