More Senate Finance Panel Tax Reform Proposals Coming Today, Thursday
Senate Finance Chairman Max Baucus (D-Mont.) on Tuesday released proposals on international taxation that would simplify the code and lead to lower tax rates, but also impose a minimum tax on US multinationals. His proposal would place a 20 percent tax on the estimated $2 trillion in income that multinational companies currently stash offshore, giving them eight years to pay it off. Then, the Baucus plan would either: 1) Tax all foreign profits at 80 percent of the corporate tax rate (which, if lowered to President Barack Obama’s 28 percent goal, would be an effective 22 percent tax rate); or 2) tax “active” income at an even lower rate while levying the regular domestic corporate rate on all worldwide “passive” income.