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This leading US company employs thousands of Americans in industries from research to manufacturing, to marketing and shipping.
Thanks to international demand for its products, and because they’re costly to ship, it has recently opened facilities abroad.
This overseas growth brings the benefit of job creation at home, from new marketing specialists who know foreign markets, to experienced supply chain managers who make sure everything runs smoothly.
Jobs like these are essential to local communities around the country.
Now this is GILTI.
GILTI is supposed to be a 10-13 percent minimum tax on businesses with high earnings from intellectual property.
The tax was adopted by Republicans in 2017 to discourage U.S. businesses from shifting profits overseas.
Unfortunately, because GILTI was poorly designed, it doesn’t just tax IP, but unintentionally places a large surtax on every US company that wants to reach customers overseas.
This makes it hard to compete with brands from other countries who don’t pay GILTI.
Today, the current administration wants to double the GILTI tax, making an already bad policy worse.
These changes will make it highly difficult for US businesses to grow overseas.
And fewer sales means new jobs at home that are never created. Unsustainable taxes mean existing jobs may be eliminated, and entire operations could be sold to foreign competitors.
Whatever its intentions, GILTI is a flawed policy, and doubling down on it will hurt us abroad, and at home.
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TaxEDU was made possible thanks to the generous support of the Stiles-Nicholson Foundation.