January 6 2022

Congressional Research Service Discusses Corporate Income Taxation in Globalizing US Economy

Source: IBFD Tax Research Platform News

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.