Profits that companies are holding overseas would be brought back home at a tax rate that looks to be around 10 percent, according to current White House estimates.
Gary Cohn, the chief economic advisor to President Donald Trump, said the tax reform plan the administration supports seeks to bring back what could be $3 trillion in offshore wealth, but at a reasonable rate.
"We are not giving companies the choice. They are going to pay the rate if they have the money overseas," Cohn said Sunday on Fox News' "Sunday Morning Futures" program. "That's how we catch up from the worldwide system to the territorial system."
The territorial system applies levies to profits earned only within a country's borders. Though that's the type the administration seeks, it's looking for a cash infusion from companies who have stored their profits abroad to avoid the highest-in-the-world corporate tax rate in the U.S.
Under the proposal outlined last week, companies will pay a "bifurcated rate" on the overseas cash, Cohn said.
Profits held in liquid assets like cash would face a higher rate, while that held in illiquid asset like plants and property would face a lower rate. Companies with the greatest amount of cash stashed overseas include Microsoft, Cisco and Apple.