Base Erosion and Profit Shifting (BEPS) refers to an effort by the Organization for Economic Co-operation and Development (OECD) countries to create a new set of international tax principles designed to better capture tax revenue from multinationals such as Apple, Google, Amazon, Facebook, and Starbucks.
The Obama Administration signed onto the BEPS project in the expectation that it would strengthen the U.S. tax base and enable Washington to hold onto more corporate tax revenues. Unfortunately, it will likely not generate more tax revenues for the United States. Instead, the BEPS rules as written will encourage American companies to move high-paying jobs such as research scientists and software developers to Europe to take advantage of lower tax rates.
In other words, unless Congress acts quickly to reform the ossified U.S. tax system, BEPS has the potential to turn into a massive job and revenue grab by Europe, and a massive loss of jobs and revenues by the United States.
Please join PPI for a conversation about the OECD’s BEPS project, how it will harm economic growth and jobs in the U.S., and what Congress can do about it. PPI Chief Economic Strategist Michael Mandel will present his new paper on the BEPS project followed by a panel discussion.
Dr. Michael Mandel, Chief Economic Strategist, PPI
Aparna Mathur, Resident Scholar in Economic Studies, AEI
Jennifer McCloskey, Director of Government Affairs, ITIC