That Horrible Territorial Tax System Biden Railed Against

Sep 6, 2012 10:30pm

VP Biden railed against Romney backing a territorial tax system.

But a number of advisers to the president support the idea as well – including members of the President’s Export Council, the commission the president set up to recommend ways to reduce the deficit, and members of his Council on Jobs and Competitiveness.

In a letter to President Obama on December 9, 2010,the chairman of his Export Council, Boeing CEO Jim McNerney, writing on behalf of the private-sector appointed members of the Council, called for a “competitive territorial tax system for the United States,” one that “should broadly follow the practice of our trading partners and should not be designed to raise new revenue, or to destabilize the U.S. corporate tax base, but rather to make the US tax system more competitive with its major trading partners.”

“The rest of the world increasingly uses territorial systems under which foreign earnings – taxed once in the foreign country – can be brought back for reinvestment in the domestic economy without incurring additional home country tax,” McNerney wrote, noting that of the 34 countries in the Organisation for Economic Co-operation and Development, twenty-five use territorial systems, with the United Kingdom and Japan having adopted them in 2009.

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