There is widespread agreement, across the political spectrum, that the gaming of the tax code by multinational corporations is a problem. When profits and jobs are shipped offshore, we not only harm the U.S. economy, we fuel a tax haven industry that drains wealth around the world. We seek to fix the problem of large, well-connected interests gaming the tax system.
By addressing unfair tax breaks given to U.S.-based multinational corporations, Congress can help level the playing field for wholly domestic businesses, end incentives for offshoring, and raise more than one trillion dollars in new revenues.
Congress must use the upcoming 2025 tax fight as an opportunity to eliminate incentives for U.S. multinationals to ship jobs and profits offshore, raise much-needed revenues to pay for policy priorities and reduce deficits, and level the playing field for domestic businesses and workers.
FACT calls on Congress to repeal the Foreign-Derived Intangible Income deduction, the Supreme Court reaffirms Congress’ taxing authority, and FACT, allies gather in Lithuania for the 2024 International Anti-Corruption Conference.
The Foreign-Derived Intangible Income (FDII) deduction benefits relatively few companies, costs the U.S. tens of billions annually in lost revenue, and perversely encourages corporations to move jobs and investment abroad.
FACT releases a new policy platform to guide multinational tax reform in 2025, and Treasury and the SEC release joint proposal introducing anti-money laundering safeguards for investment advisers.
With negotiations surrounding the expiration of large parts of the 2017 Tax Cuts and Jobs Act already underway, lawmakers must move quickly to close costly loopholes, prevent offshoring of jobs and profits, and provide adequate tax transparency for U.S. multinational corporations.
