Rocco Femia comments on options to address concerns regarding corporate tax base erosion in Ways & Means Committee Chairman Camp’s International Tax Discussion Draft. Femia noted the conceptual issues raised in particular that Option B, which would tax currently all active foreign business income subject to low rates of foreign tax: "Once one accepts a territorial framework, it is not clear why active foreign income should be treated differently depending on whether it's subject to meaningful foreign rates of tax."

Femia also noted that the Discussion Draft is premised on revenue neutrality, and therefore that significant changes to the base erosion proposals may necessitate offsetting changes elsewhere. "I think it's important for commentators that are considering these rules to take that into account," Femia said. "If one has a preference for one of the options but only if it's changed a certain way, that may have ripple effects throughout the draft."