A new mini-documentary released today by the Center for Freedom and Prosperity Foundation explains how President Obama’s new international tax proposal will put U.S.-based firms at a serious competitive disadvantage compared to foreign-based companies.

America is one of the few nations to tax citizens who live and work abroad. Indeed, no other industrialized nation imposes a second layer of tax on its expatriates. Senator Jim DeMint (R-SC) has introduced legislation, the Working American Competitiveness Act (S. 3496), to eliminate the worldwide reach of the IRS. By creating a territorial system for labor income, the DeMint legislation will put American workers and U.S.-based multinationals on a level playing field with competitors from other nations. This is a welcome move, particularly since American expatriates were just hit with a tax hike.

If policy makers created a level playing field by making Section 911 universal, more Americans could find jobs in the global economy, U.S. companies would become more internationally competitive, and U.S. exports would substantially increase.

More than 20 of the country’s largest and most influential free-market groups urged the chairmen and ranking members of the House and Senate tax writing committees to reject fiscal protectionism and instead reform the internal revenue tax code so that American companies would not have a reason to relocate overseas. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ April 24, 2002 Identical […]

More than 20 of the country’s largest and most influential free-market groups asked Treasury Secretary Paul O’Neill to support a territorial tax system for corporate income. Based on the common sense notion that governments should tax only the income earned inside their borders, a territorial tax system for corporate income would dramatically boost the competitiveness […]