…we’re holding this hearing today about international tax reform – a critical component of our comprehensive plan to overhaul our tax system from top to bottom.
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American companies competing overseas are rightly concerned that the [base erosion and profit shifting] BEPS project will result in higher foreign taxes, higher compliance costs, and double taxation. As countries around the world incorporate the BEPS ideas into their tax systems, many more companies could be forced to restructure their business operations and move U.S. activities, such as research and development, overseas.
Read the chairman's opening statement.
In advance of the Ways and Means hearing, the Joint Committee on Taxation (JCT) released a report describing present law and recent global developments related to cross-border taxation. Read JCX-8-16
Members of the Ways and Means Committee have indicated their desires to introduce or have introduced legislation to address international tax reform issues. Chairman Brady stated in January 2016 that he “…intends to have a vote on international tax reform this year in the Ways and Means Committee” and the chair of the Tax Policy subcommittee, Charles Boustany (R-LA), stated earlier this week that he intends to write a bill on international reform bill in the near future. Yesterday, the ranking member, Sander Levin (D-MI), introduced an anti-inversion bill that would impose limits on earnings stripping.
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