International Tax Gimmicks
International Tax Gimmicks Weekly Wastebasket | Dec. 15, 2017 Most of the discussion about “Tax Reform” has centered on individual and business rates. Far less attention has been given to international tax changes, even though they contribute more than $250 billion in revenue (over 10 years) to hold down the cost current proposal. A little background: The U.S. is one of the few countries that imposes “worldwide” taxation. That is, U.S. taxpayers (both corporate and individual) pay tax on both their U.S. and foreign income (profits). Taxpayers can also deduct taxes paid to other countries, so taxpayers only pay U.S. taxes on foreign income if they exceed the foreign taxes. But, corporations get a special benefit. Corporations only pay U.S. tax on their foreign earnings when those profits are brought back (“repatriated”) to the U.S. Any profits left outside the US are not subject to current tax. Both the House and Senate...