CBO defends tax report from GOP criticism

The taxation of multinationals has become one of the more prominent sticking points in the broader debate over tax reform.

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Camp and other Republicans prefer a so-called territorial system, which would essentially shield most or all of a corporation’s offshore profits from U.S. taxation.

But President Obama, in his recent State of the Union address, called for instituting a minimum tax on offshore income.

Camp had criticized the January CBO report for taking sides in what he said was a controversial discussion.

“This report purports to provide an even-handed review of different policy issues related to the taxation of foreign source income,” Camp wrote to Elmendorf last month.

“However, a closer analysis of the report reveals that it is heavily slanted and biased in favor of one specific approach to the taxation of foreign source income – and relies heavily on sources that tend to support that conclusion while ignoring sources that support a different conclusion,” he added.

The back-and-forth between the Ways and Means chairman and CBO comes after Senate Republicans and the Congressional Research Service engaged in a similar spat last year.