CORPORATE TAX AVOIDANCE: ADDRESSING THE MERITS OF PREVENTING MULTINATIONAL CORPORATIONS FROM ENGAGING IN THE PRACTICE AND REPATRIATING OVERSEAS PROFITS

摘要

The United States is a global economic leader with one of the most advanced economies in the world.223 Other countries are not so fortunate, and therefore, it is incumbent upon the United States to make economic decisions that will serve as an example to developing nations and those with whom we stand on an equal playing field.224 This includes making tedious decisions with regard to how our government treats the entities that are able to reap the numerous benefits that are afforded to them by way of United States citizenship or by way of incorporation under United States law. Adopting an isolationist position or an anti-globalization position, as has been floated around by President Trump,225 is dangerous because of the negative effects that could impact our domestic economy and the global economy at large. Unless our legislators change their position on the structure of the tax code, tax avoidance practices will continue to thrive and evolve as MNCs continue to develop ever more clever strategies for avoiding their tax obligation. The key is to find a way to change how MNCs think of income tax and how they approach it. This might involve setting new income tax rates, new exemptions, or any other device that enables a MNC based in the United States to pay their income tax as a normal course of operation, without avoiding the obligation as being cost-ineffective for its shareholders. The Treasury Department will need to continue to develop tax plans and incentives that are attractive to MNCs based in the United States, as well as foreign MNCs, if the United States is to remain a global economic leader.