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International Tax Reform, an Important Component of Comprehensive Tax Reform
This morning, the Ways and Means Subcommittee on Select Revenue Measures is holding a hearing with tax professionals in an ongoing effort to gather comments and analysis of the Committee's territorial tax reform discussion draft. The Ways and Means draft is a part of the Committee’s broader effort on comprehensive tax reform that would lower top tax rates for both individuals and employers. The discussion draft also transition from a worldwide to a territorial system of taxation, eliminating the double taxation U.S.-based companies face when bringing profits earned overseas back home. The proposal has received support from employers, economists, academics and tax experts for its effort to make the United States a more attractive place to invest and create the jobs this country needs.
Jeremy Scott, Editor, Tax Notes: “Although there has been a lot of talk about tax reform and even some plans put forward over the last year, the corporate tax reform draft offered by Ways and Means Chair Dave Camp is probably the first serious shot in the war to overhaul at least part of the federal tax system…Ending the lockout effect, which keeps U.S. multinationals' cash in foreign jurisdictions, is the most important part of the Camp plan...”
Lowell Yoder, Head of McDermott Will & Emery’s U.S. & International Tax Practice: "Chairman Camp’s proposal is the most detailed entry in the territorial debate thus far, and—to the surprise of many in the business community—his proposal includes robust new rules that further restrict the ability of multinationals to shift income to low-tax jurisdictions. Multinationals and their critics alike will find much worth considering in Chairman Camp’s proposal.”