WASHINGTON, DC — Today, the Organization for Economic Cooperation and Development (OECD) released long-awaited recommendations under its Base Erosion and Profit Shifting (BEPS) project to address the tax treatment of corporate profits earned across borders. The BEPS proposal does not change U.S. law, but other nations are expected to adopt the recommendations, and it will have a significant impact on American companies doing business abroad. In response, House Ways and Means Committee Chairman Paul Ryan (R-WI) released the following statement.
“This is the consequence of a broken and neglected American tax system. Trillions of dollars of American capital are locked out of the United States and, as a result, U.S. companies are being targeted by governments eager to tax away their earnings. While the details still require close review, this proposal will only increase the pressure for American businesses to move overseas. And it could put huge new burdens on American job creators. That’s one reason I’m troubled that the administration has not responded to questions Chairman Hatch and I have raised about some of the proposed requirements. Ultimately, the solution is to bring our tax code into the 21st century, allowing companies to bring back their earnings without penalty and making our tax rates more competitive with the rest of the world. There is never going to be a perfect time to fix the tax code, but stalling for so long got us into this problem. We can’t afford to wait any longer.”