📈 Tax Havens and Low-Tax Jurisdictions Account for 60% of U.S. Direct Investment Income Abroad

In 2023, U.S. direct investment abroad generated $577 billion in primary income, with $343 billion (60%) coming from tax havens and low-tax jurisdictions. Leading sources included Ireland ($84.5B, 14.6%), the Netherlands ($72.0B, 12.5%), the UK ($66.7B, 11.6%), Singapore ($51.4B, 8.9%), Caribbean tax havens ($61.5B, 10.6%), and Luxembourg ($35.1B, 6.1%). Following the 2017 Tax Cuts and Jobs Act TCJA), income from Caribbean tax havens and Luxembourg declined by 26.1% and 17.3%, respectively, while Ireland, the UK, and Singapore saw gains of 35.6%, 42.4%, and 71.7%—far exceeding the global increase of 11.3% from 2017 to 2023.