Proceedings of a Seminar on the U.S. Stake in U.S. Foreign Investment
Investment abroad plays an important role in the U.S. economy, not just for the earning statements of firms doing business overseas, but because it creates markets for U.S. manufactured products and provides capital for domestic economic growth. Currently, national policy regarding foreign investment is marked by a great deal of confusion, and too little thought has been given to a tax policy that could best further U.S. competitiveness in overseas markets.
To increase understanding of the critical role of U .S. direct investment abroad, the Tax Foundation held a seminar in Washington, D.C., on September 13, 1988. Leading representatives of the business community, the media, Congress and the Executive Branch, and academia explored this important issue and offered specific recommendations for a more enlightened policy in foreign investment.
The seminar was a follow-up to publication by the Tax Foundation of a study entitled “The Competitive Burden: Tax Treatment of U.S. Multinationals.” This incisive study, authored by Raymond Haas, International Tax Partner, Arthur Young and Company, documents the serious disadvantages that U.S. firms now face when competing in world markets because of our own national tax policies. The presentations at the seminar and our precis of each are contained in these proceedings.