Backers of a territorial tax system argue that the current worldwide system puts US firms at a competitive disadvantage since they must pay the high US tax rate on repatriated profits earned by their affiliates in low-tax countries, while multinationals based in territorial countries pay only the local tax rate on these profits, Toder writes.
Paul Ryan's tax play mimics the tactics of the 2012 campaign, Gleckman writes, promising tax reform built around wildly ambitious but gauzy rate reductions without a word about how to pay for them.
Making the tax code less complicated and more efficient may not achieve the rate-cutting, base-broadening reform many want, Gleckman writes, but it can have important consequences for real people.
President Barack Obama's State of the Union address will likely touch on tax reform, Gleckman writes, but it remains to be seen whether even corporate reform is possible in 2013.
House Ways and Means Committee Chairman Dave Camp's investment tax plan implicitly challenges our most basic and firmly held beliefs about why we tax investment gains the way we do, Sanchirico writes.
The current taxation of derivatives is complicated and inconsistent, Rosenthal writes. Investors often use these tax differences to manipulate the character, timing, or source of their income to reduce their tax liability, he adds.