Overview of International Tax Reform
The international tax reform is a concept that is centered around United States of America, as the country is only one to implement it with a certain degree of proficiency. The international tax reform is used on an extensive basis by the United States of America.
Jumpstart Our Business Strength Act
The Jumpstart Our Business Strength Act is an important part of the international tax reforms of the United States of America. It was instituted on the 2nd of October in the year 2003 by the Senate Committee on Finance of the United States government.
This act provides a reduction in the rate of taxes that are levied on the repatriated income made by the foreign subsidiaries of the United States of America. In this case the income that is subjected to taxation is more than average. The rate has been brought down to 5.25%.
This act was instituted on a temporary basis of one year. This act mainly deals with the corporate funds that had not been employed by the United States companies. The cash flow that was supposed to have been generated from this function was meant for a variety of purposes like paying off the national debts for example.
The main aim of the Jumpstart Our Business Strength Act is to help the national economy of the United States and also address the various problems of business expenditure of the country.
They look to achieve the desired level of success through the following means:
- Spending More on Capital Goods
- Providing More Strong Corporate Balance Sheets
- Increasing Business to Business Buying
- Creating Better Employment Opportunities
- Better Cash Flows
Effect of International Tax Reform
The international tax reform like the Jumpstart Our Business Strength Act has had an effect on the following factors of United States of America:
- Taxes imposed on people
- Economy
- Balance sheets of corporate entities
- Capital spending
- Dividends provided by the shares of the companies
- Jobs and unemployment