Staying up to date on the US tax proposals - Ernst & Young - Global

On both the domestic and international tax fronts, recent Obama Administration tax proposals represent reform on a level which has not been seen for many years. Below you can access a range of insights into the changes. These insights will be refreshed as the set of proposals moves its way through the legislative process.

Executive briefing: US international tax rules
President Obama and Treasury Secretary Geithner on 4 May 2009 announced proposals for sweeping changes to the US international tax rules (pdf, 166kb). These changes, if enacted, could dramatically change the competitive position of US multinational businesses across all industries.

Some descriptions have labeled these proposals as aimed at addressing “abuses” and eliminating “loopholes.” Putting the labels aside, the proposals kick off a legitimate fundamental tax policy debate about how to tax multinational businesses. The debate is happening not just in the US, but around the world. Further, the potential impact is significant: If enacted, these proposals would fundamentally alter the international tax system and would have far-reaching implications for the global operations of US businesses.

The Obama Administration business tax proposals: Industry effects by sector
A new Ernst & Young publication estimates the effects of the Obama administration business tax proposals by major industries (pdf, 130kb). The President has proposed $341 billion of business tax increases over the next 10 years, with $102 billion of business tax reductions. In addition, the President's proposals would raise an additional $81 billion from higher income tax rates on high-income owners of pass-through businesses.