While the 2025 tax reform law largely extends and makes permanent many provisions of the 2017 Tax Cuts and Jobs Act, a number of surprising changes were also made to the taxation of U.S. corporations' foreign income. FACT's latest policy brief breaks down these changes, which amount to a nearly $170 billion tax cut for the largest multinational corporations.
From the policy brief:
"While the 2025 tax law’s international tax provisions have been labelled “America-first”, in reality, most of the changes will lower the effective tax rates multinationals pay on foreign income, and therefore further incentivize the continued movement of investment and income abroad.
"Small half-steps forward, such as the elimination of the QBAI offshoring incentive, are no replacement for true international tax reform, like the FACT-endorsed No Tax Breaks for Outsourcing Act. Such reform would completely remove incentives for U.S. multinationals to offshore jobs and profits, while raising hundreds of billions in new revenue."
Read the full brief or download as a PDF here. |
