Senator Offers Overhaul of Corporate Tax Code
By JONATHAN WEISMAN, NYT
WASHINGTON — The chairman of the powerful Senate Finance Committee on Tuesday released a long-awaited plan to overhaul the tax code for multinational corporations, trying to jump-start an effort to stem the flow of jobs and money abroad.
The legislation, offered by Senator Max Baucus, Democrat of Montana, would permanently exempt much of the profits earned by American corporate subsidiaries in foreign countries, but it would immediately tax profits from goods and services sold to the American market from such subsidiaries.
It would establish a temporary 20 percent tax rate on billions of dollars in corporate earnings that have been parked abroad and would order all such earnings to be taxed, payable over eight years, creating a one-time windfall of more than $200 billion for the Treasury.
The idea is to end the “lockout effect” of the current tax code, which encourages companies to move operations to low-cost jurisdictions, sell into the United States and park profits overseas indefinitely.
(More here.)
WASHINGTON — The chairman of the powerful Senate Finance Committee on Tuesday released a long-awaited plan to overhaul the tax code for multinational corporations, trying to jump-start an effort to stem the flow of jobs and money abroad.
The legislation, offered by Senator Max Baucus, Democrat of Montana, would permanently exempt much of the profits earned by American corporate subsidiaries in foreign countries, but it would immediately tax profits from goods and services sold to the American market from such subsidiaries.
It would establish a temporary 20 percent tax rate on billions of dollars in corporate earnings that have been parked abroad and would order all such earnings to be taxed, payable over eight years, creating a one-time windfall of more than $200 billion for the Treasury.
The idea is to end the “lockout effect” of the current tax code, which encourages companies to move operations to low-cost jurisdictions, sell into the United States and park profits overseas indefinitely.
(More here.)
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