Business leaders speak out on overseas taxes
ACA is strongly encouraged by the statements of US corporate leaders during Congressional hearings in October 2011 calling for territorial taxation. This move away from worldwide taxation should encompass individuals as well as corporations. The United States is the only country in the world, other than Eritrea, to impose citizenship-based taxation on individuals residing overseas.
As Edward Rapp, Group President and CFO, Caterpillar Inc. stated: "As we've looked at tax systems around the world, we see common characteristics we believe ought to be part of any tax reform in the United States. Second, do away with the worldwide structure and implement a territorial tax system like those in most other industrialized nations. This would provide a level playing field for American companies competing in markets at home and abroad."
Adopting residency-based taxation for American citizens would reinforce US competitiveness abroad as US corporations would be encouraged to once again send Americans overseas to represent U.S interests. This would open up new job opportunities in the US and would stimulate exports, thereby creating additional US jobs.