WASHINGTON, Oct. 18 (UPI) -- Members of the House Ways and Means Committee are working on an overhaul of the international tax code, sources told The Hill newspaper.
The current tax codes allow the federal government to tax U.S. corporations' profits no matter which country the profits are earned in, the newspaper said.
The system being pushed by some Republicans, including Ways and Means Chairman Dave Camp, R-Mich., is called the territorial system. It would call for corporations to pay U.S. taxes only on earnings generated within the United States.
Those in favor of the system say they believe corporations would send foreign earnings back to the United States, where they would be used for investments.
The U.S. corporate tax rate is 35 percent, among the highest in the world. With several other nations adopting the territorial tax system recently, including Britain and Japan, some believe changing the U.S. system would level the international business playing field.
Sources said the panel is considering releasing the proposal for public reaction rather than going straight after the change in the form of a new bill, The Hill said.
