Will taxes on U.S. citizens and companies abroad be increased or decreased? (“territorial approach”)

Unlike every other developed country, the U.S. imposes tax on the worldwide income of its citizens and permanent residents who live overseas. The US imposes high corporate income tax rates on US multinationals as well as complex “controlled foreign corporation” rules and reporting obligations. This year international tax issues have become a hot topic of debate in the US, since Chairman Dave Camp of the tax-writing Ways & Means Committee has proposed a “territorial approach.”

Rep. Dave Camp, Chairman, Ways & Means Committee, on U.S. Territorial Tax Proposal (Bloomberg Video)

U.S. House Ways & Means: Comprehensive Tax Reform – Territorial Tax Proposal
Ways and Means Discussion Draft
Discussion Draft Section-by-Section
Press Release: Camp Releases International Tax Reform Discussion Draft
Discussion Draft: One Page Highlights
Discussion Draft: Three Page Summary
Talking Points and Background: Reforming the Tax Code to Get America Working Again
Comments: Business Leaders in Support of a Territorial Tax System

Additional Information on U.S. Taxation of Citizens’ and Corporations’ Overseas Income

Please click this link to download a zip folder with Background Information re Taxation of U.S. Citizens’ and Corporations’ Overseas Income. These are position papers, economic analyses prepared in 1995 and in 2005 by PWC, letters to Congress, etc. on the Foreign Earned Income Exclusion (FEIE) and the AmCham position paper on a tax treaty between the U.S. and Vietnam. There is also a long paper of U.S. Treasury Dept official testimony to the Senate Finance Committee re Tax Treaties in general.

120221-22 Global Summit of U.S. Business - Tax.