With the current U.S. deficit, we need all the money that is owed to us, rather than expect the taxpayer to pay interest on our red ink. Closing the loophole that allows corporations to defer paying taxes on overseas profits is not a new tax, it is collecting what is already owed. Stop rewarding shipping our jobs overseas.
Deferral of Income from Controlled Foreign Corporations
Multinational companies can defer paying U.S. income taxes until they transfer overseas profits back to the United States, under this law. In practice, many companies leave much of their profits overseas indefinitely, thus paying only the tax in the relevant foreign country, which is likely far lower than the U.S. rate, and avoiding U.S. taxes permanently. The list of corporations enlisting this loophole is seemingly endless.
5-yr Cost to Government: $172.1 billion
Who benefits: Every multinational company.