Submission to House Ways & Means Committee in Connection with February 24, 2016, Hearings on Intl. Corp Tax Reform -- Residence Based Tax System

Abstract

This concise submission shows that from many tax policy standpoints a residence-based tax system would be significantly better than a territorial-based tax system. Policy issues mentioned include:

-- competitiveness,

-- broadening of the tax base so the rate can be lowered,

-- domestic job loss

-- neutrality of physical location and legal ownership of assets,

-- simplification, and

-- trapped cash problem.

Keywords: International Tax Reform, Full-Inclusion System, Residence-Based System, Worldwide Tax Consolidation, Territorial System

JEL Classification: H21, H25, K34, E62