November 14, 2017
Address600 New Jersey Avenue, NW, Washington, DC 20001 View map
IIEL’s Itai Grinberg Offers Analysis on Tax Bills
Tax reform is top of the news this week, and in the international tax arena both the House and Senate tax reform bills include significant rules to limit inbound base erosion by multinational corporations. Two new and novel rules — Section 4303 of the House bill and the “Base Erosion and Anti-Abuse Tax” (BEAT) in the Senate proposal are garnering particular attention. This article by Professor Itai Grinberg compares these two very different approaches to addressing inbound base erosion. The article focuses on issues associated with administrability and potential foreign responses. It concludes that while the Senate’s BEAT represents a pragmatic and geopolitically savvy policy that helps level the playing field between U.S. and foreign MNCs, the House approach is both unworkable and undesirable.
Professor Grinberg testified at the U.S. Senate Finance Committee’s October 3, 2017 hearing on International Tax Reform. Video of the testimony and a downloadable, written copy of the testimony are online.