Home Daily Blitz US Companies Push Back on One Idea for Taxing Their Foreign Profits

US Companies Push Back on One Idea for Taxing Their Foreign Profits


The following is an excerpt from Yuval Rosenberg | August 28, 2017 | Thewashingtonpost.com |

The corporate lobbying push on tax reform is moving full speed ahead. If you watch cable news, you’ve likely seen ads from the Business Roundtable and other groups that are already spending millions of dollars to promote tax reform on television and radio. But not all the efforts are so public.

In a piece in Sunday’s Wall Street Journal (paywall), Richard Rubin offers details on one behind-the-scenes campaign by corporations to shape tax reform. Rubin reports that a group of large U.S. companies called the Alliance for Competitive Taxation issued a policy paper earlier this month warning against the “unintended and adverse consequences” of forcing companies to pay a minimum tax.

Such a minimum tax is reportedly one option under consideration as part of a shift to a territorial tax system, with a lower corporate rate for domestic profits, intended to incentivize companies to bring back some of the profits they have stashed in foreign countries to avoid paying a relatively `high tax rate on those earnings at home.

Rubin explains: “Republicans want to lower the corporate-tax rate and let companies bring future global profits home without paying U.S. taxes on top of foreign taxes. They are searching for a way to do that without giving companies an incentive to move more operations and profits to countries with far lower taxes.”

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