COMMITTEE on WAYS and MEANS

Chairman Dave Camp

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International Tax Reform, an Important Component of Comprehensive Tax Reform

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Washington, Nov 17, 2011 | comments

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.

Mark Snell, President, Sempra Energy
:  “The thoughtful discussion draft [the Committee] released on a territorial plan is a solid beginning to allowing U.S. companies to base business decisions on the quality of the underlying investment and not be driven by the tax code.  We support the structure proposed in your discussion draft and would like to work with the Committee to build upon this effort to ensure that your territorial tax plan encourages investments of global U.S. based companies in U.S. jobs and infrastructure.”

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.”


More examples of support for a 25 percent rate and transition to a territorial tax system can be found below.

Economists, Academics Push for Reform of Corporate Income Tax System

Facts Confirm Corporate Rate Can be Cut to 25 Percent

Territorial Tax System: Increasing U.S. Competitiveness and Economic Growth

Move to 25 Percent Corporate Rate & Territorial System Gaining More Support


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