CBO: GOP Corporate Tax Proposal Bad For Jobs

From Think Progress:

...However, a slew of corporations have, for years, been pushing for the U.S. to adopt what’s known as a “territorial” system for corporate taxation instead. Under such a system, U.S. corporations would never have to pay taxes on profits earned overseas. House Republicans have embraced the idea, as did Mitt Romney during his unsuccessful presidential campaign.

But the Congressional Budget Office is out with a new warning about adopting such a system:

Alternatively, the United States could move toward a territorial system—for example, by exempting some income earned abroad from U.S. taxation or by taxing domestic income only but using a formula that considered the location of a company’s activities to determine the sources of its income. Such policies could result in a less efficient allocation of resources among countries by increasing incentives to shift business operations and reported income to countries with lower tax rates.

While it, too, has its problems, “eliminating deferral entirely would boost U.S. tax revenues by more than $100 billion over a 10-year period...”