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May 04

The Impact of Worldwide Taxation on American Competitiveness

Location: 2360 Rayburn House Office Building

The United States government taxes the income that American citizens and US-chartered companies earn in other nations. This policy of "worldwide taxation" has an adverse impact on competitiveness, which is one of the reasons why all tax reform proposals - such as the flat tax - are based on the common sense principle of territorial taxation. A territorial tax system would tax only income earned inside US borders, a policy that both respects the right of other nations to control the taxation of economic activity inside their borders and enables US companies and citizens to compete on a level playing field in foreign markets. The debate between worldwide taxation and territorial taxation is particularly relevant today since Congress is grappling with legislation to replace the FSC/ETI law - an issue that largely revolves around issues of international tax policy. Dan Mitchell will address the need for fundamental reform. Veronique de Rugy will address how the IRS's global tax reach undermines the competitiveness of U.S. companies. And Andy Sundberg will focus on the issue of double taxing U.S. citizens overseas.

More About the Speakers

Veronique de Rugy
Visiting Scholar,
American Enterprise Institute

Andy Sundberg
Founder and Director,
American Citizens Abroad

Daniel J. Mitchell
McKenna Senior Fellow in Political Economy, The Heritage Foundation

Hosted By

The Heritage Foundation The Heritage Foundation

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