Taxing the $2.5 Trillion

Abstract

This article discusses a transition tax on deemed repatriated foreign earnings. It argues for a simple, rough-justice design and no offset for foreign tax credits. A delayed effective date would permit corporations to repatriate at the current system and under current rates to take advantage of foreign tax credits.

Keywords: Transition Tax, Deemed Repatriation, Foreign Tax Credits

JEL Classification: K34