Why the US isn’t getting its money back from foreign travel funds
US taxpayers will be paying about $12.5 billion to foreign travel investors this year.
But the amount is a fraction of the billions that the Treasury Department will collect from travelers as part of a $1.9 trillion program.
That will be up from the $1 billion already paid to overseas investors under a previous $1 trillion repatriation program.
The Treasury Department is now trying to determine what the exact dollar amounts will be for the next year.
The Trump administration says it will pay the $12 billion in repatriation taxes in two installments starting with the March 2018 tax return.
But officials are working to determine whether they will be able to collect that money.
The US has agreed to pay about $15.7 billion in taxes this year on the repatriation of profits from overseas companies, and to repay about $11.4 billion in interest on the loans that foreign companies took to finance the investments.
It will be repaid in 2019 and 2020, depending on the size of the investments at issue.
The administration is also working on a bill to refund some of that money back to investors.
“The goal is to have that repatriation tax bill paid by April,” Treasury Secretary Steven Mnuchin said at a news conference Wednesday.
“But we’ve got a long way to go.”
The Treasury’s bill would refund the money, and some investors would get refunds from 2018.
It would also be phased in over several years, as the Treasury has to collect more money each year.
A key sticking point for the Trump administration is the cost of interest on those loans.
Treasury has said that $5.9 billion would be paid back from 2018 to 2021.
But it is not clear whether that is enough money to cover the entire cost of the repatriations.
The department says that it has a $2.1 trillion backlog of outstanding interest payments, and it expects to pay back about $3.2 trillion in that period.
The House and Senate have both passed legislation to shore up the interest payments that have been due over the past several years.
But those bills do not specify how much interest will be paid, or how long those payments would be.
Congress passed legislation last year that would extend the program for another decade, and then extend it for another three years.
Mnuchin announced Wednesday that the Trump government would begin the process of figuring out how much the $15 billion would pay back.
“We will be moving forward very soon to determine the best way to pay off these outstanding debt obligations,” Mnuchin told reporters.