Today’s announcement by the OECD that U.S.-headquartered corporations will continue to be exempt from key elements of the global minimum tax regime represents a regrettable setback for the global fight against corporate tax avoidance.
Instead of undermining multilateral tax cooperation, Congress should address incentives in the U.S. tax code that encourage the offshoring of jobs and profits by American multinational companies.
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.
Build Back Better offers a first step toward meaningfully curbing tax-haven abuse, protecting American jobs, and beginning to meet the challenge set by the Biden Administration to end the international race to the bottom in corporate tax collections.
US multinational corporations currently pay little to no US tax on their foreign profits, which incentivizes these companies to shift profits and real operations to tax havens.
