Senate Proposes Tax Hikes on Income Earned Overseas (1)

Senate tax writers on Monday proposed a significant tax increase on companies’ foreign-earned income, going beyond the House version.

Three marquee international tax rates from the 2017 GOP tax law would see boosts under the Senate’s legislation, according to a bill summary released Monday.

The legislation would revise the effective rates to 14% for foreign-derived intangible income and global intangible low-taxed income. The base erosion minimum tax calculation would also be changed to 14% of modified taxable income over adjusted regular tax.

The proposal would also change the names of the regimes of FDII and GILTI to “foreign-derived deduction eligible ...