A Better Way to Tax the Multinationals

A Better Way to Tax the Multinationals

By Michael Wolraich on Tue, 06/04/2013 - 8:47am |

A better approach would be to tax a company's earnings based on where its products are sold, using what is known as the destination approach. For example, earnings from the production of a smart phone sold in the United States would be subject to U.S. corporate tax, regardless of the company's residence or where the company reports its production to have occurred.

Using destination to determine tax liability would allow the United States to impose tax on its fair share of multinational earnings while eliminating any incentive for companies to move their activities or themselves to other countries, since the same U.S. tax would still apply regardless of residence or source.

URL:

http://www.huffingtonpost.com/dave-johnson/a-better-way-to-tax-the-m_b_3381881.html