Camp’s Territorial Proposal May Complicate Push for Tax Holiday

House Ways and Means Committee Chairman Dave Camp’s proposed rewrite of the U.S. approach to international taxation will require multinational companies to decide whether to continue a push for a repatriation holiday or wait for a broad overhaul of the tax code.

Draft legislation that Camp, a Michigan Republican, released yesterday would create a territorial system of taxation, in which the U.S. would only tax domestically generated income. The proposal sets up a tax system in which companies wouldn’t lobby again for a temporary tax holiday because their overseas earnings would be out of reach of U.S. tax authorities.