Business & Management Studies

Abstract

This paper is prepared to take a look at a unique tax provision in the United States 2017 Tax Act (Tax Cuts and Jobs Act of 2017) dealing with foreign earnings of United States multinational firms that are engaged in business activities in many countries throughout the world.  This act dramatically changed the tax status of typical foreign earnings of United States multinational corporations as far as United States taxation is concerned.  However, in light of this dramatic change, the unique tax provision that was also added in the United States tax law in the 2017 Tax Act that this article addresses tries to ensure that that dramatic change in the tax status of typical foreign earnings of United States multinational corporations did not go too far.  This paper looks at this unique tax provision in terms of its purpose, application and, as much as possible, its future in United States tax laws.