Tax Law Discourages U.S. Investment and Leaves Taxpayers in the Dark, According to New Report from Senate Finance Democrats
A recent report released by the Senate Finance Committee ranking member Ron Wyden asserts that the new tax legislation has resulted in “more complexity, loopholes and incentives to ship jobs overseas.” According to the report, the global intangible low taxed income (“GILTI”) provisions create a new web of complexity and leave taxpayers in the dark regarding future investment decisions. Additionally, instead of discouraging foreign investment, the new provisions reportedly have the opposite effect. With GILTI’s exemption for a routine return on depreciable assets outside of the U.S., companies may end up paying no tax to the U.S. on income earned from offshore investments, such as manufacturing plants or equipment. Further, the report purports that, rather than leveling the international playing field, GILTI could harm companies that invest and hire in the U.S.
Read more here: Trump’s Tax Law and International Tax: More Complexity, Loopholes and Incentives to Ship Jobs Overseas