What are the options for reforming our international tax system? Q.What are the options for reforming our international tax system? A.On its face, reforms that would remove the incentive for US corporations to move abroad and lower corporate tax rates to make US corporate activity more competitive seem straightforward. In fact, unraveling the Gordian knot created by taxation-as-usual would be far from simple. Read more about What are the options for reforming our international tax system?
How does the current system of international taxation work? Q.How does the current system of international taxation work? A. All countries tax income earned by multinational corporations within their borders. The United States also taxes the foreign-source income of US-based multinationals when it is repatriated to the US parent, with a credit for foreign income taxes they’ve paid. Most other countries simply exempt the foreign-source income of their multinationals. Read more about How does the current system of international taxation work?
How does the tax system affect US competitiveness? Q.How does the tax system affect US competitiveness? A. The international tax policies that best encourage firms to invest in the United States are not necessarily the policies that best help US multinational companies compete with foreign-based multinationals. Policymakers face a trade-off among goals. Read more about How does the tax system affect US competitiveness?
