What are the consequences of the new US international tax system? Q.What are the consequences of the new US international tax system? A.Despite enactment of the 2017 Tax Cuts and Jobs Act, which reduced these incentives, current rules still encourage US multinational firms to earn and report profits in low-tax foreign countries, enable both US- and foreign-based firms to shift profits earned in the United States to other countries, and encourage companies to incorporate in foreign jurisdictions. Read more about What are the consequences of the new US international tax system?
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?
What are inversions, and how will TCJA affect them? Q.What are inversions, and how will TCJA affect them? A.An inversion is a transaction in which a US-based multinational company merges with a smaller foreign company and then establishes its residence in the foreign company’s country. As a foreign resident, the company can sometimes significantly reduce its taxes without changing the location of any real business activities. Read more about What are inversions, and how will TCJA affect them?
