U.S. tech hubs like Silicon Valley, Seattle, Austin, and Boulder are filled with entrepreneurs and visionaries who provide innovative products and services. The impact of proposed tax laws on the U.S. technologies sector is a key topic of discussion, especially since the U.S. President-elect has proposed slashing the tax rate to 10 percent on income held overseas in order to bring money back to the U.S. for investment domestically.
Join thousands of business professionals at the 41st Annual Tax Law Conference in Washington, D.C. on March 3, 2017 to network and learn about the biggest tax law changes planned for 2017 and how those changes may impact hi-tech firms. Register online at www.fedbar.org/taxlaw17.
Currently companies bringing back foreign earnings to the U.S. can trigger a tax liability of 35 percent. The largest beneficiaries of the proposed tax rate move are American technology companies, which have profited from low-tax jurisdictions overseas, including the Cayman Islands, Switzerland, Luxembourg, and Ireland, to avoid the high statutory tax rates of carrying their profits back to the U.S.
As part of the expected corporate tax overhaul, a substantial reduction in the 35 percent rate would allow tech’s largest multinational corporations to bring back cash designated as “permanently reinvested” overseas and possibly reinvest in Research & Development, manufacturing, and other services that are currently outsourced to other nations.
It is standard for global businesses to exploit loopholes that allow them to register profits in countries with lower corporate tax rates, however this means the earnings (and taxes that go with them) do not come back to the U.S.
The stakes are particularly high for the technology sector. Of the 30 publicly traded companies with the most cash held overseas, the top five were tech firms: Apple Inc., Microsoft, Google’s parent company Alphabet, Cisco, and Oracle. Hi-tech companies have been accused of “sheltering” money abroad and not contributing enough to the American tax system.
The upcoming Tax Law Conference at the Ronald Reagan Building and International Trade Center in Washington, D.C. will allow lawyers, law students, accountants, and other business professionals to engage with celebrated panelists on numerous practice areas involving international law, securities, accounting, and licensing. Explore tax developments and emerging policy issues in sessions featuring speakers from the IRS, Treasury Department, Department of Justice, and Congress, as well as experts from the private sector.
Technology continues to evolve at warp speed, requiring lawmakers to address developments and the application of the tax code to this industry. Prominent tax law scholars who study these systems will lend their knowledge to help explain fiscal policy, economic growth, and the costs associated with administering novel programs and rules. Sign up for the Tax Law Conference today to take advantage of early bird rates!
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations and social media campaigns.