By: Amanda Wilson
As I was driving in to work this morning, I was listening to a story on the radio about the country’s aging infrastructure. The interesting part (at least to a tax lawyer ), was the statement by Transportation Secretary Anthony Fox that the Obama administration was proposing taxing corporate earnings that are overseas to fund the necessary infrastructure repairs. Currently, these overseas corporate earning are generally only subject to U.S. taxation when they are brought back into the U.S., and many corporations avoid bringing these overseas earnings into the U.S. for this very reason.
Statements about taxing overseas earnings have become a popular refrain of the Obama administration in recent months, and we can expect significant activity in this area in the future. Stay tuned.