International Tax Rates See Slight Increase in GOP House Bill

The multi-trillion dollar House GOP bill passed early Thursday morning raises the effective tax rates on companies’ foreign-earned income ever-so-slightly, a change that a tax professional says accounts for a specific budgetary maneuver and rules required in the Senate.

The mammoth tax package was amended from a previous version that cleared the Ways and Means Committee last week. The full House-passed legislation includes a decrease in the deduction companies receive for global intangible low-taxed income, or GILTI, and foreign-derived intangible income, or FDII.

The FDII deduction was reduced to 36.5% from 37.5%, and the GILTI deduction changed to 49.2% from ...