Time for US to lead on international tax policyNovember 19, 2015
In recent days, the new Speaker of the House Paul Ryan (R-Wis.) signaled a priority for international tax reform in 2016. And if the newest recommendations from the Organization of Economic Cooperation and Development (OECD) are any indication of what’s ahead on the global tax scene for American businesses, it should be number one on the legislative agenda when Congress returns in January.
The OECD released the findings of its Base Erosion and Profit Shifting (BEPS) project, and delivered them to the G20 Summit in Lima, Peru in October. The project is rooted in the belief that multi-national corporations (MNCs) are not paying enough tax – even when they observe the laws of each country where they do business.
The timing is unfortunate, since the world desperately needs more investment by large firms, not less, and higher tax burdens will not inspire greater investment.