Today, the Joint Committee on Taxation (JCT) released a report (JCX-96-15) that examines the taxation of repatriated foreign earnings.  The report provides a description of present law related to the repatriation of foreign earnings, analyzes recent tax reform proposals that have included a deemed repatriation as part of a transition to a new international tax system, and discusses the economic impact and design of a one-time tax on historic foreign earnings.  The report concludes that “[a] one-time tax on historic earnings is a more efficient method of raising revenue than increasing the tax burden on future earnings.”  

The House Ways and Means Subcommittee on Select Revenue Measures will hold a hearing on the taxation of repatriated foreign earnings as a source of funding for the Highway Trust Fund on June 24.