Bernie Sanders

Bernie Sanders's policies onTaxes

Close loopholes that allow U.S. corporations to artificially inflate or accelerate foreign tax credits

When U.S. corporations earn profits overseas, taxes paid to the foreign country are credited against U.S. tax liabilities. Under current rules and tax planning strategies, corporations are allowed to claim foreign tax credits for taxes paid on foreign income that is not subject to current U.S. tax. As a result, companies are able to use such credits to pay lower taxes on their U.S. taxable income than they would if it was all from U.S. sources – providing them with a competitive advantage over companies that invest in the United States.

Sen. Sanders would reform current law to limit foreign tax credits to offset income only from the country in which it is earned.

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