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Senate’s Offshore Tax Ideas Could Be a ‘Goldmine’ for Some Companies

  • Plan proposes 12.5% tax rate on intellectual-property income
  • Bills ‘upend decades of U.S. tax policy’ on tight deadline
Bloomberg business news
Hank Greenberg on U.S. Tax Reform, Corporate Tax

U.S. companies that make billions of dollars from patents and other intellectual property held offshore would be eligible for a special 12.5 percent tax rate on those earnings under the Senate tax plan.

That’s a potential “gold mine” for some multinationals, said Michael Mundaca, co-director of Ernst & Young’s National Tax Practice -- especially compared to international tax provisions in the House bill that generally would apply a top rate of 20 percent.