Ways and Means Chairman Camp releases Discussion Draft for corporate rate reduction, territorial tax system
Washington National Tax Services
House Ways and Means Committee Chairman Dave Camp (R-MI) on October 26 released for public comment a Discussion Draft on tax reform that lowers the top corporate income tax rate to 25 percent and adopts a territorial tax system. Under the Ways and Means Draft, a 95-percent dividends received deduction ("DRD") would be provided for eligible foreign-source dividends. The territorial tax system and related international tax proposals are intended to be revenue neutral and include a partial inclusion of historic earnings and profits of 10-percent or more U.S.-owned foreign companies as well as anti-base erosion options.