|Territorial Systems||Transition Since 2000||Worldwide Systems||Top Marginal Tax Rate|
Unlike most OECD (Organization for Economic Co-operation and Development) nations, the United States taxes American companies on their business income earned in foreign countries.
In fact, while the U.S. has stood still on reform, a growing number of developed economies are transitioning to the modern international tax system (i.e. “Territorial Taxation”). Now, 28 of the 34 OECD nations (and all other G8 member countries), employ some form of territoriality, which is up from 17 just a decade ago.
According to the non-partisan Tax Foundation, every independent U.S. advisory board, working group, and federal agency tasked with exploring corporate tax reform has recommended that the U.S. pivot toward a territorial system. These include President Obama’s Economic Recovery Advisory Board, Council on Jobs and Competitiveness, National Commission on Fiscal Responsibility and Reform, among others.