The Myths and Facts about International Tax Reform

Enacting comprehensive tax reform – which includes modernizing our international system of taxation – is unquestionably difficult. Our current tax code is overly complex and is filled with fine print that locks in the status quo and locks out $2 trillion in private investment. As our political leaders in Washington and families across America continue to debate the challenges and opportunities associated with reform, please see below for the facts on why international tax reform is in the best interests of all Americans.

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Myth: Reform will cause U.S. jobs to move overseas to low-tax countries.

Fact: Globally engaged U.S. companies employ more than two people in the U.S. for every one person they employ abroad.
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Myth: American companies that invest overseas detract from U.S. growth.

Fact: Overseas operations supplement – not supplant — U.S. operations.
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Myth: Reform will encourage tax abuse.

Fact: Reform will give American companies greater ability to invest foreign earnings, while protecting the U.S. tax base.
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Myth: U.S. companies don't pay their fare share of taxes.

Fact: The U.S. has the highest combined statutory corporate tax rate (39%) among OECD countries, yet it is the only G8 economy that hasn't modernized its international tax laws.
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Myth: Reform will increase the deficit.

Fact: Corporate tax revenue as a share of GDP tends to be higher in countries with modernized international tax systems. Consequently, reform would encourage approximately $2 trillion in private sector investment.
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Myth: Much of the $2.0 trillion that is “trapped” overseas will never come back to the U.S.

Fact: Making international tax reform permanent will eliminate the burden of double taxation, providing U.S. companies with an incentive to bring profits home.
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