US Senate Democrats Seek Change in Trump Tax Reforms to Create US Jobs

Top Democrats on the Senate Finance Committee on Monday proposed major shifts in former President Donald Trump's 2017 tax reforms to eliminate what they say are incentives for companies to move operations overseas and shift profits to tax haven countries. 

The plan proposed by Democratic senators Ron Wyden, Sherrod Brown and Mark Warner parallels some of the corporate tax hike proposals announced last week by President Joe Biden to finance $2 trillion in U.S. infrastructure investment.  The senators are targeting provisions in the landmark 2017 Tax and Jobs Act that govern how companies' foreign income is taxed, the Global Intangible Low-Taxed Income system, the Foreign-Derived Intangible Income tax and the Base-Erosion and Anti-abuse Tax.  The systems were aimed at returning companies' deferred offshore income to the United States at lower tax rates, where those profits could be invested in American jobs. But in practice, the Democrats said, they created new incentives for companies to invest more overseas to take advantage of new exemptions.