Overview
Bloomberg BNA quoted Phil West in an article titled “Tech, Pharma Could Pay More Under Tax Bill Global Provisions.” The article, published November 2, explains why US drug and technology giants with overseas operations could pay more under House Republicans’ sweeping international tax overhaul plan. According to the article, the Tax Cuts and Jobs Act would impose a US tax on 50 percent of what the bill calls “foreign high returns.” The tax is 20 percent, so that total tax would be 10 percent on those returns. Practitioners say the tax could affect companies that aren’t capital-intensive — companies that don’t have a lot of physical property and do a hefty amount of business centered on intangibles.
Mr. West, chair of Steptoe, says that drug manufacturers and IT companies could fit that bill. “Those could suffer quite a bit. That 50 percent tax could be a very big number,” he adds.
The full article can be read at Bloomberg BNA.
