Congress Should Only Make Changes to Repatriation Policy When Establishing a Territorial System

This year, in addition to making certain expiring provisions permanent, such as 50 percent expensing, which is often called bonus depreciation, Congress has the chance to advance the cause of tax reform by improving the way the tax code handles international taxation. Finally moving to a territorial system would be strongly pro-growth and improve opportunities for American families of all income levels. If Congress changed repatriation policy as a stand-alone measure to cover a hole in the Highway Trust Fund, it would create less incentive to change the tax policy from a worldwide system to a territorial system. Instead, Congress should focus on establishing a territorial system and reserve changes to repatriation policy for aiding that sizeable improvement to the tax code.

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