On the last page of a nine-page tax plan that calls for slashing business rates, President Donald Trump and congressional Republicans proposed a little noticed, brand-new tax that may hit companies like Apple Inc. and Pfizer Inc.
It's contained in one sentence: "To prevent companies from shifting profits to tax havens, the framework includes rules to protect the U.S. tax base by taxing at a reduced rate and on a global basis the foreign profits of U.S. multinational corporations." The rate and formula aren't specified, but that lone sentence carries multibillion-dollar implications for multinationals. Their lobbyists are noticing.
Proposing a new tax on U.S. companies' foreign profits "is appalling," said Ken Kies of Federal Policy Group, whose clients include General Electric Co. and Microsoft Corp. "The whole point of this tax reform was to make U.S. corporations more competitive. It's going to do the opposite."
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.