The Congressional Research Service (CRS) of the US Library of Congress issued a new report, entitled "Corporate Income Taxation in a Global Economy" (R47003-Verision 1) to address issues emerging in the taxation of corporations in an increasingly global economy.
The report provides a brief overview of US corporate income tax as well as shifts in US economic activity toward globalization in recent years. It further explains the rise of the intangible asset as a key economic component and lays out the basics of international income taxation.
The report goes on to list a series of issues that arise in the sphere of corporate taxation as the US economy becomes more global, including:
- location of tangible investment;
- debate on value creation and digitalized companies; and
- profit shifting:
- the significance level of profit sharing and rules to address it;
- transfer pricing and its rules; and
- debt.
Note: The CRS is an agency within the US Library of Congress and serves the US Congress by providing legislative research and analysis throughout the legislative process.