In a report obtained by the Financial Times that could catalyse the debate over corporate tax reform, the Hamilton Project and Center for American Progress (Cap) will argue US companies should no longer be taxed on foreign earnings. At the same time, however, they would no longer be able to take tax deductions on the costs of doing business overseas and interest payments on money borrowed from banks located outside the US. Capital investments in the US could be immediately written off for tax purposes instead of being subject to long depreciation schedules.
The proposal, which is being examined by White House officials, seeks to marry two seemingly conflicting aims of corporate tax reform: to encourage investment in the US and discourage “offshoring”, while bolstering the competitiveness of US companies with large international operations.
Read more here: Think-tanks seek US corporate tax overhaul