(V.I. Consortium) ST. THOMAS — Governor Kenneth Mapp has lobbied U.S. Department of Treasury Secretary Steve Mnuchin and congressional leaders, seeking what Government House says is the territory’s share of the Trump administration’s efforts to return to the U.S. what is estimated to be about $4 trillion in tax dollars, being held by American companies on foreign soil.
Mr. Trump met last week with Mr. Mnuchin as well as Senators Orrin Hatch and Mike Crapo, and Representatives Vern Buchanan and Tom MacArthur on the matter, “to ensure that the U.S. Virgin Islands was not left out of the effort to bring as much as $4 trillion back to American coffers.”
But how the funds would be returned has not been clearly laid out, and what exactly is the territory’s share, if any, gets even murkier. Government House did not explain.
The current system — in which profits earned abroad are not taxed until they are brought home — creates perverse incentives, encouraging American companies to park their money in lower-tax havens outside the United States.