Taxing Foreign Source Income: A Businessman’s View

December 1, 1977

Download Government Finance Brief No. 27

Government Finance Brief No. 27

Executive Summary There is broad agreement that world trade and investment contribute significantly to the economic wellbeing of this country. Economic interdependence bas become a reality. At the same time there is a diversity of opinion as to the appropriate U.S. policy with respect to taxation of foreign source income.

In the past 15 years or so U .S. tax policies have increased the burden on income earned abroad—both corporate and individual—on a unilateral basis. In recent years these policies have been under almost continuous public discussion and debate by Congress, labor, and the business community.

In this Brief, B. Kenneth Sanden, C.P.A. and Partner, Price Waterhouse & Co., sets forth a candid “businessman’s view” of U.S. policy with respect to the taxation of foreign source income. Mr. Sanden holds that primary emphasis in international tax policy should be on economic neutrality. He sets forth and explains the basic concepts which he believes must be maintained to preserve that neutrality. This Brief constitutes the text of a paper presented by Mr. Sander at the Tax Foundation’s annual tax conference in New York on November 30, 1977.


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