2016 Republican Tax Plan Has "Territorial" Business Taxes

The House Republicans have released their tax plan in advance of the 2016 election.

One unique aspect of the plan is the move to a "territorial system" for business taxes.

Currently, the US is one of the few nations that taxes the earnings of individuals and businesses at a world-wide level. In other words, even if you, or a business, makes money in Europe, you'll pay American taxes on those earnings.

At least for businesses, House Republicans aim to change that :

The plan would adopt a “territorial” approach for foreign business income to make America an attractive place to headquarter multinational corporations. The lower tax rate, territorial approach, and capital expensing would generate a large inflow of real investment and paper profits to our shores, rather than repelling them as our current tax system does.

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