- Global Minimum Tax Under Consideration for Tax Reform
- July 13, 2017
The Senate is reportedly exploring the possibility of a global minimum tax, an idea which has historically had some bipartisan support. One approach being considered is a version of the provision that was included in the 2014 tax reform legislation proposed by Dave Camp, the former chairman of the House Ways and Means Committee. That proposal, which generally had the effect of a global minimum tax, applied a 15% tax on foreign intangible income if ultimately derived from consumption outside of the US and 25% if derived from the US. The tax would not apply if the local jurisdiction taxed the income at more than 15%. The global minimum tax constitutes an alternative to the House Republicans’ border-adjustment tax—and a switch to a territory-based system—but has been criticized as encouraging inversions and takeovers as only companies headquartered in the US would face this tax.