One More Reason For Tax Reform: It’s Time To Bring Dollars Home From Overseas
According to the U.S. House Committee on Ways and Means, because American companies must pay a penalty when they bring profits home from overseas, U.S. worldwide business are now holding more than $2 trillion in profits abroad. Congress must enact federal tax reform in order to bring those profits home to be invested here.
In written comments to the U.S. Senate Finance Committee, MSCI advised that the United States move to a territorial tax system because it will allow U.S. companies to repatriate their earnings, creating more capital flowing through the economy to create jobs and investment here at home. A move to a territorial tax system also will make the system fairer and will ease MSCI members’ tax compliance burden. Additionally, it will make U.S. companies more competitive against global competitors since the majority of the United States’ major trading parties operate on a territorial tax system.
In the letter to the Finance Committee, MSCI President and CEO M. Robert Weidner III said, “We cannot be left behind. Now is the time to make this long-needed change to encourage greater investment in the United States by both foreign and American businesses.”