Tags: Trump Administration | Trump Tax Reform | house | gop | crackdown | tax | havens

House GOP Plans Crackdown on Corporate Tax Havens

House GOP Plans Crackdown on Corporate Tax Havens
Rep. Kevin Brady (AP)

By    |   Monday, 06 November 2017 10:44 AM

Republican legislators in the House are planning on including a new excise tax on multinational corporations to combat tax avoidance to the GOP tax plan, Politico reports. 

Buried inside the Republican tax bill is a 20 percent excise tax on cross-border transactions for multinational companies, unless they allow the income they make on products sold in the U.S. to be subject to U.S. taxes.

This is to reduce the amount on money multinational companies can shuffle through various subsidiaries in different countries to avoid taxes, requiring that companies pay a "gross basis" excise tax on sales made by overseas affiliates of American companies unless they submit these subsidiaries to U.S. taxation.

"This could have a serious impact on global supply chains and ultimately increase prices for consumers — akin to the unpopular border adjustment tax debated earlier this year," the Koch brothers-backed Americans for Prosperity wrote to House Ways and Means Committee Chairman Kevin Brady, R-Texas, last week.

"The provision, as written, violates the promise the Big Six delivered earlier this year that they would not include a consumer tax in their tax package."

Under this structure, European companies that use local distributors to sell foreign-made products in the U.S. may have to pay taxes to both the U.S. and the country they're located in.

"That would be a structure that would at least initially be hit by the full force" of the excise tax, Michael Mundaca, former U.S. Treasury Department assistant secretary for tax policy, told Reuters. 

He added, "I am sure" that European officials "are making calls right now to their counterparts in the U.S. Treasury looking for some explanation . . . and making the point that this might be contrary to treaty obligations."

Rep. Brady said last Friday at a Politico Playbook event, "We expect a lot of input and feedback from industry" on the proposal. "That's one of those areas I think we'll continue working that through conference."

© 2018 Newsmax. All rights reserved.

   
1Like our page
2Share
Politics
Republican legislators in the House are planning on including a new excise tax on multinational corporations to combat tax avoidance to the GOP tax plan, Politico reports.
house, gop, crackdown, tax, havens
322
2017-44-06
Monday, 06 November 2017 10:44 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved