The House bill proposes an international tax system that would subject income of high-profit foreign subsidiaries to a 10 percent minimum tax. This new international tax system is a compromise between a territorial system, which would exempt foreign income altogether, and a worldwide system, which would tax all income, foreign or domestic, on basis at the same rate. Because of the mechanics of the formula for calculating the minimum tax, the tax can be reduced by moving assets overseas. The United States, however, remains wedded by politics and ideology to an inefficient, easily manipulated and antiquated tax policy. Rather than driving the United States to be a competitive force in the 21st century, the Republicans’ plans hold the United States back in the last one.

Source: New York Times November 15, 2017 10:41 UTC