Tagrepatriation

Revamping U.S. Taxation of Multinational Corporations?

istock-tax-blog-cliffBy:  Amanda Wilson

The Obama administration and top lawmakers are in discussions regarding a potential overhaul of how the United States taxes U.S. multinational corporations.  Topics under consideration include eliminating the U.S. approach of taxing U.S. companies on their world wide income and imposing a one-time tax on offshore earnings (earnings that have not been repatriated back into the U.S.).

The talks are in early stages but are definitely something to keep an eye on.

 

 

Targeting Overseas Earnings

istock-tax-blog-cliff

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.

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