How This Impacts Mobility
International tax laws are complex and may affect multinational corporations to a greater degree than smaller companies. Even more so, a failed overhaul of these laws will affect the mobility industry nonetheless.
There are many details needing adoption, not only within the U.S. Congress with each party bringing their own proposals to the table, but cooperation from key foreign countries as well.
Whether the confluence of ideology and economic theory will bring compromise or confrontation is still unknown, but the U.S. does not want multinational businesses to view it as a high tax country.
Such a global view incentivizes companies to place assets offshore - or worse, encourage the tax avoidance method of inversion in which a current U.S. parent company becomes the subsidiary of the foreign parent, thus moving its tax residence to the lower-taxing foreign country. It benefits us all to retain and encourage U.S. investment.
Should any member have questions, please reach out to our Vice President of Member Engagement and Public Policy, firstname.lastname@example.org.
Craig Anderson, SCRP, SGMS, is Vice President of AECC Mobility and Chair of the Worldwide ERC® Tax Forum.