International tax policy has been a hot topic inside the Beltway since last year. With all the talk, policymakers and stakeholders alike have wondered what’s in store for 2016 and beyond. While passage of legislation remains uncertain this year, on Wednesday, the House Committee on Ways and Means helpfully furthered the conversation with its hearing “The Global Tax Environment and Implications for International Tax Reform.”
In his opening statement, Chairman Brady established the backdrop for the hearing by pointing to a set of factors pressing Congress toward reform, including the flurry of acquisitions in recent years, the state aid actions coming from the European Commission, and the Organisation for Economic Co-operation and Development’s (OECD) Base Erosion and Profit Shifting (BEPS) process which is aimed at coordinating international taxation among OECD member countries. Chairman Brady’s comments reinforced the notion that these issues must be addressed through a comprehensive rewrite of the code.
Witness testimony also touched on these drivers while presenting tax writers with suggestions for a pathway forward. Importantly, there continued to be unanimous agreement that the status quo is unacceptable. Interestingly, all witnesses focused on the need to lower the corporate rate as a top concern, and nearly all endorsed a move to a territorial system of taxation. Without such reforms, the panelists agreed that there will continue to be economic distortions resulting from our current code.
At ITI, we appreciate the focus on reform, especially through the lens of global competitiveness. The tech sector is innovation based and global in its essence and the policies implicated by Wednesday’s hearing will determine the future strength of our economy – in the United States and around the world. We know that these are thorny issues that require serious examination and debate. Ways and Means leadership set a tone at this hearing that they understand the challenges and are poised to tackle them thoughtfully.
Research and development are the lifeblood of the United States’ innovation economy. The breakthroughs borne out of American ingenuity fuel the U.S. economy and drive new global products and industries. [...]
Sound tax policy helps to drive economic growth, research and development (R&D), and innovation. These factors are essential to ensuring the global competitiveness of companies doing business in the United [...]
The Organisation for Economic Co-operation and Development (OECD) announced in March that Mathias Cormann will serve as the institution’s next Secretary General. Cormann’s June 1 start date means the first [...]
The Organisation for Economic Co-operation and Development (OECD) announced in October 2020 a revised goal of mid-2021 for reaching political agreement in negotiations to address tax challenges arising [...]
As we continue to look for ways to address the immediate impacts of the COVID-19 pandemic and reinvigorate the economy, tax policy provides a powerful tool. These measures afford policymakers with the [...]
As lawmakers have considered changes to the tax code over the years, a few common principles have underpinned those efforts. First, they have wanted to create incentives to locate jobs in the United States. [...]
This week action occurred in France that received little notice. On Monday, the Assemblée Nationale passed digital services tax legislation that would apply a three percent tax on revenues derived from [...]
The 116th Congress marks another moment of profound political change and an important opportunity to advance policies that meet the needs of Americans and American-based businesses in the 21st century. [...]
Across the globe, governments are realizing that outdated approaches -- from trade agreements to privacy guidelines – no longer address the needs of the modern economy. In response, many are quickly moving [...]
The start of the 115th Congress and new administration not only marked an era of profound political change, but it also presented a unique and timely opportunity to modernize outdated policies. Lawmakers [...]