The corporate foreign tax credit is a tax policy that reimburses corporations that pay taxes to foreign governments. This makes moving operations - and jobs - to foreign countries more economically attractive. This also increases our deficit, unemployment, and trade imbalance. The American taxpayer should not pay a single dollar to encourage corporations to engage in activities that damage our economy, and shrink our tax base. It should be more expensive to operate outside the country, rather than less.
Over 10 years, the elimination of this toxic tax policy could pay down our deficit by over 7%, and bring millions of jobs back to America.
Why is this important?
The current IRS code gives a massive tax credit to multinational corporations that pay taxes to operate in foreign countries. Each year, over $100 billion dollars are lost to our treasury, and used to subsidize the offshoring of American jobs, at a time of 14% real domestic unemployment.
