Layla Asali Quoted on Foreign Profits Tax Proposals in Law360

"Foreign Profits Plan Could Be Starter For Biz Tax Reform"
Law 360
02.17.15

Layla Asali was quoted discussing the differences and similarities between the Administration's proposal for a one-time 14 percent tax on foreign earnings and the proposal made by former Ways and Means committee chairman Dave Camp. "All of the proposals we've seen coming from the Hill or administration have some kind of transition tax. Essentially everyone agrees that if we move to a new system, we'll need a way to clean up accumulated earnings, but not everyone agrees with how we will treat those accumulated earnings," Asali said. "Fourteen percent is a higher rate than what we've seen from the Camp proposal, but each proposal features some sort of deemed repatriation. If we all agree we need to have a new system, we need a solution for taxing earnings that have been accumulating under our current system -- I think that's how I would view the 14 percent tax, not as something categorically new."

Asali said she finds it helpful to understand the Administration's perspective on international tax reform. "Whether the administration will be able to achieve success with this particular Congress at this particular time isn't the question to ask, but the ideas set forth are more comprehensive and more reform-minded than the last few budgets," she said. "It is quite interesting for us to know where the White House stands on this."

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