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Territorial Taxation: An Idea that Should be Part of Tax Reform

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President Donald Trump and Republican leaders from both houses of Congress are about to undertake the challenge of designing tax reform legislation that can be passed and signed by the president. The concept of territorial taxation is a key idea that should certainly be included in the reform package to create new jobs and boost wages for U.S. workers. This is a key opportunity for President Trump to fulfill his campaign promise to improve the economy for the forgotten middle class Americans who propelled him into the Oval Office.

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The U.S. imposes not only the highest top marginal tax rate in the developed world, but also heavily burdensome taxes on international business income. Our tax system deters companies from being headquartered in our country, trapping large amounts of corporate profits overseas. The compliance costs of our tax code are excessive and create huge distortions of economic activity. Key reforms to these aspects of our tax system would lead to economic growth and the creation of many, many new jobs for the American people.

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Taxing corporate income on a territorial basis would levy the taxes on income earned within the borders of the country where that income is earned. This avoids the double taxation of the worldwide approach, where corporate income is taxed both on where the income is earned and where the corporation is headquartered.

As the U.S. still largely uses the worldwide taxation system, many countries around the world are changing to taxation on a territorial basis. If the U.S. also does this, it would free up about $1.7 trillion currently trapped overseas. This income could be invested in the U.S. economy, creating many new jobs. Just that change alone in our tax policy would have great benefits to the American people.

While some claim that territorial taxation will increase overseas investment, most economists confirm that the combination of foreign and domestic investment has a synergistic relationship that helps create strong domestic economic growth. Economics studies of countries that have adopted territorial taxation confirms this is true.

It is easy to make a populist argument about worldwide economics based on a zero-sum view, but it is quite myopic to do so. Increased investment, both foreign and domestic, is very much that “rising tide” that “lifts all boats” as referenced by President John Kennedy. That rising tide will help create millions of jobs for Americans. The increased activity that will result from territorial taxation will also increase the revenues obtained from corporate taxes.

Under territorial taxation, corporate income would be taxed in the country where it is earned, and under the version proposed by Rep. Dave Camp (R-MI), the Chairman of the House Ways and Means Committee, 95 percent of foreign income would be exempt from double taxation. Tax policy should be neutral in its effect on how business make investment decisions, a key concept that would be true of a system of territorial taxation. In truth, worldwide taxation decreases investment.

A territorial tax system would increase investment by U.S. companies, allowing them to be more competitive around the world. Eliminating U.S. taxes on foreign earnings would free up that income to be brought back to the U.S., which would also increase investment in our economy.
The benefits of implementing a territorial taxation system should make it a no-brainer for Congress and President Trump. This system should undoubtedly be used because the American people will be far better off as a result.

Edward Woodson is a lawyer and now host of the nationally syndicated Edward Woodson Show, which airs daily from 3 to 6 pm EST on gcnlive.com.

Congress

‘Let Them Be Free!’: Marjorie Taylor Greene Urges Trump to Pardon Edward Snowden and Julian Assange for Exposing ‘the Crimes of Barack Obama and the Deep State’

This is what real conservative leadership is all about.

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Soon-to-be Congresswoman Marjorie Taylor Greene of Georgia is joining a movement urging President Donald Trump to pardon NSA whistleblower Edward Snowden and Wikileaks founder Julian Assange for opposing deep state corruption.

Greene made the declaration with a Twitter post on Thanksgiving night:

Greene made the comment in reference to a renewed push from Rep. Tulsi Gabbard (D-HI) for President Trump to pardon Snowden and Assange.

“Since you’re giving pardons to people, please consider pardoning those who, at great personal sacrifice, exposed the deception and criminality of those in the deep state,” the iconoclastic progressive lawmaker wrote in a tweet.

“Brave whistleblowers exposing lies & illegal actions in our government must be protected,” Gabbard wrote in a Twitter post accompanying a video recording earlier this year. “Join me and urge Congress: Pass my bipartisan legislation (HRes1162, HRes1175, HR8452) calling for charges against @snowden & Assange to be dropped & to reform the Espionage Act.”

Big League Politics has reported extensively on Greene’s bold approach that completely rejects the conventional wisdom of the Washington D.C. swamp on a wide variety of issues, particularly foreign policy:

New York Congresswoman Alexandria Ocasio Cortez tried to get sassy on Twitter in light of the recent drama regarding election regularities taking place across the nation.

Due to this, President Donald Trump has not conceded the election and is waiting for the courts to settle any kind of irregularities at polling locations in key swing states. This obviously has Democrats and their media allies fuming over Trump’s steadfast devotion for the rule of law and election integrity.

One of the most outspoken critics of Trump’s decision to not concede has been AOC. She tweeted on November 10, 2020, “I hope people realize that the same Republicans who are refusing to acknowledge the results of our elections also champion disastrous foreign policy claiming they’re ‘bringing democracy’ to other nations.”

AOC’s comment was met with immediate backlash after incoming Congresswoman Marjorie Taylor Greene offered her two cents on the matter. The new congresswoman for Georgia’s 4th District tweeted “You voted for @JoeBiden who voted for the Iraq War, which cost America trillions of dollars and thousands of lives.”

… Greene was specifically calling out AOC for her hypocritical behavior of voting for a candidate that was one of the most seasoned proponents of foreign adventuring and a big booster of the defense industry. Certain officials from defense contractors such as Raytheon CEO Gregory Hayes have stated that a Biden presidency would not entertain any form of defense cuts whatsoever. Biden is the consummate political insider and AOC’s support for him belies her marketing as an outsider.

Greene is showing how the Republican Party should be shifting with Trump at the helm. Greene’s rise represents a populist, anti-establishment GOP that rejects neocon usurpers like former South Carolina governor Nikki Haley and Rep. Dan Crenshaw (R-TX).

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