The U.S. Joint Committee on Taxation published a document, U.S. International Tax Policy: Overview and Analysis. The document has been prepared for a public hearing of the Senate Committee on Finance on 25 March 2021.

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INTRODUCTION AND SUMMARY

The Senate Committee on Finance has scheduled a public hearing on March 25, 2021, titled "How U.S. International Tax Policy Impacts American Workers, Jobs, and Investment." This document, prepared by the staff of the Joint Committee on Taxation, describes legal and economic background on U.S. taxation of cross-border activities.

Part I includes an introduction to the basic principles of international taxation and present law. While providing a general overview, it focuses on selected provisions newly enacted or substantially revised in Public Law 115-97. Subpart A is a general overview, subpart B describes taxation of foreign activities by U.S. taxpayers, and subpart C describes the provisions addressing taxation of U.S. activities of foreign taxpayers.

Part II summarizes international efforts to address tax challenges of the digitalization of the economy, and the implications for the United States.

Part III provides an analysis of recent economic literature that addresses cross-border taxation.

Part IV analyzes data based on U.S. corporate tax filings for the first two taxable years to which Public Law 115-97 applied.