TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Thursday, May 18, 2017

Grinberg:  The House GOP Blueprint Can Be Drafted To Comply With WTO Rules

Itai Grinberg (Georgetown), The House GOP Blueprint Can Be Drafted to Comply with WTO Rules:

The House GOP Blueprint can be drafted into legislation in a manner that would comply with the United States’ international trade obligations. This paper presents two alternative approaches that avoid the key WTO discrimination and subsidy issues often raised in discussions of destination-based cash flow tax proposals.

The good news is that by carefully studying WTO rules, US tax policymakers can preserve our policy flexibility without violating our international law commitments. WTO issues need not and should not be determinative in choosing a sensible approach to US business tax reform. Multiple options exist to make a destination-based cash flow tax border-adjustable.

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