Businesses hate GILTI but may like Democrats’ overhaul plan even less POLITICO 1 hr ago By Brian Faler © Photo Illustration by Justin Sullivan/Getty Images Republicans created GILTI in their 2017 tax overhaul as a way to go after the money big corporations often sock away in overseas tax havens like Bermuda.
GILTI may need a new name if Democrats get their way.
They want to transform the Global Intangible Low-Taxed Income tax into something broader than just a levy on so-called intangible income. That’s the money companies earn from things like patents and other types of intellectual property they often stash in overseas tax havens.
Biden proposals may not guarantee all Fortune 500 corporations pay federal income taxes, experts say
msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Biden plans may not ensure Fortune 500 firms pay income taxes, experts say
washingtonpost.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from washingtonpost.com Daily Mail and Mail on Sunday newspapers.
U.S. Cross-border Tax Reform and the Cautionary Tale of GILTI
Daniel Bunn
Key Findings
The U.S. joined many other developed nations in adopting territorial provisions and anti-base erosion rules as part of the 2017 tax reform.
One major piece of that reform, that is not typical in other territorial systems, is a new definition of currently taxable foreign earnings, Global Intangible Low Tax Income (GILTI), which is taxed at an effective rate of 13.125 percent, with the rate set to increase after 2025 to 16.4 percent.
Recent research has shown that foreign earnings of U.S. companies remain taxed at similar rates even after the 2017 reforms, implying that while the structure of U.S. taxes on foreign earnings changed, the overall burden did not.