Tax Reform Debate to Effect Multinational Corporations

The Obama Administration recently issued a proposal that would change the way U.S. multinational companies are taxed on their foreign earnings, eliminating the current ability for U.S. companies to defer double taxation on such earnings.

The Dallas Regional Chamber participated in a roundtable discussion held by Congressman Sam Johnson (R-Plano) on May 27 to highlight this issue. During the event, many DFW corporations expressed their concern regarding the potential effects of such a proposal on their ability to remain competitive in an increasingly global economy. The U.S. is one of the few countries in the OECD that operates on a worldwide tax system which taxes companies for profits twice, both abroad and at home. Many other countries operate on a territorial system by which corporations pay taxes on their home country profits in their home country and on their foreign profits in the foreign country. Such a tax reform proposal could have long term effects on U.S. companies' competitiveness and ability to keep American jobs, according to a statement by Congressman Johnson.

The Dallas Regional Chamber does not currently have a position on this issue; however, we are seeking member feedback at this time.

For more information on this issue, download the U.S. Chamber's analysis.

Chamber members may submit their comments to Jane Edson at (214) 712-1937 or jedson@dallaschamber.org.