>> As President Trump and Congressional Republicans try to overhaul the tax code, lobbyists for large companies are trying to figure out a solution for these firm's overseas profits. The U.S. would like them to bring that money home, but the companies don't want to pay taxes on it. Reuter's Washington Correspondent Ginger Gibson.
>> Currently when a company makes profit overseas and they leave those profits there, they're not subject to the 35% income tax that they would pay on the money made in the United States. It's not until they bring that money back, or repatriate it, to the United States that they are subject to the tax.
And for that reason, there are trillions of dollars, likely more than $2 trillion in profits that have been left overseas to avoid these taxes. The Trump administration and Republicans are proposing that they allow a lower tax rate, and at the same time, force these companies to bring the money back.
So instead of taxing them at 35%, which is what most of that income would be taxed at, they tax it instead at 10 or even lower. Trump has said 10%, but we know now that businesses are pushing to bring that rate even farther down.>> President Obama proposed a forced repatriation with a 14% tax, but it never gained much traction.
Trump has lobbyist for tech companies, drug makers and manufacturers hoping that he'll be a little more flexible.>> Lobbyists tell me that they are getting receptiveness from the administration as they make this case. That they are listening to their appeal and that it doesn't appear the Trump administration is set on a hard number, that there is some flexibility and negotiation there.
>> Trump promised tax reforms on the campaign trail. But with his healthcare overhaul awaiting a Senate rewrite, and new scandals engulfing the White House nearly every week, the big question is, whether Washington will be able to get a tax deal done this year.