Years because of changes happening in that market. Or is it too small piece of the pie to make much of a difference . Thats another one we wouldnt have indication of right now. Were still not sure of the impact that would have. We have to wait until we see data which would be 2014 data wont be available for two more years. At this time, we dont have the answer to that question. John with npr. It seems to me, people who might want to take some comfort from this decline in the rate of growth and healthcare should not take comfort because it basically whats happen historically after a recession. Price growth stabilizes. Maybe were near record lows because were through a record great recession. Is that the case . Are you saying theres no change in the long term trends here . What were saying in the article is that the relatively low rates of growth that weve seen over the last four years are consistent with the historical tend. We dont characterize those trends. Its consistent with what we
Need to leave. Any comments on that. Steve, do you want to start . Sure, i can address that. I do not think shifting to a territorial system is right. The two problems that weve highlighted here are earning stripping and the deferred accumulated earnings of these controlled foreign corporations. If we shift to a territorial system in which a u. S. Company is only taxed on its u. S. Source income, and not taxed on its foreign income, there will be all the more incentive for multinationals to strip income from the u. S. Base and shift it abroad. Isnt that the first step and then you deal with all those issues let me finish my answer. So as part of any consideration of territorial, we need to address the earnings stripping issues that were discussing here. One of the observations professor shay made in his article, he wanted treasury to adopt regulations that could fold into tax reform and weve got to address earning stripping and we have to do it sensibly and i think we could fold that i
Tax rate of those companies to be reduced. And thats why were talking about this subject. So it appears that having a bow tie is not an indication of prof sor yal stature but tax planning. John, you started us off by talking about the fact that your view, this set of practices were a symptom of a larger set of drivers in the Corporate Tax structure and that ultimately and i think you wouldnt get any disagreement with anyone here we need to be addressing those larger drivers. But in the context of the current debate, first of all, can i ask you to ask would the measures that steve and steve have put on the table be effective and then we can go beyond that to say should treasury take it. Lets start with the effective. So the answer is i dont think so. But theres an overarching point before i get back into the weeds which is why are we trying to raise the bar so it will be harder for companies to leave the United States. Why arent we trying to do something to make it more attractive for t
Battlefield. And then ralph nader and Grover Nordquist discuss asks the state of bipartisanship in government. Treasury secretary jack lew spoke about actions his department could take to bolster Corporate Tax accountability and make the u. S. A more attractive place to invest. He weighs speaking at the Tax Policy Center in washington, d. C. His remarks are followed by tax law experts discussing the issue of corporate inversions, which is when a company tries to ease its tax burden by rye incorporating its affairs from one country to another. This is just under two hours. Theres some standing room in the front there on the left, if there are people feeling a hill crowded back there. You can come on over here. Yes. Okay. Good morning, everyone. I am sarah rosen moretell. And i have the opportunity for welcoming everyone here, including those of you standing in the back to, for joining us, a special welcome, of course, to our guest of honor, secretary jack lew. Its an enormous honor for
Or in a number of different other circumstances guaranteed debts and the like. Those trigger a current inclusion of these deferred income thats been allowed to accrue tax free just like your i. R. A. Has been allowed to accrue tax free. And in code section 956, congress authorized treasury to write regulations to prevent the avoidance of the provisions of the section through reorganizations or otherwise. So, again, treasury has been given authority under this code section to tackle the kinds of problems, economic challenges that the inversion phenomena exists. As i mentioned, there are over 500 specific grants of authority. Im only highlighting two here. I could speak to many more, but ill let the discussion continue. Thanks. So im going to return back to steve again. Steve, i want to ask if theres any other tools you want to add to that list, and then well spend a few minutes talking about first the impact of using those tools and then secondly how we think that would the wisdom of do