“The Home Court Advantage” is the label U.S.-based multinationals associated with the Business Roundtable want to apply to their territorial tax proposal. The problem is that the territoriality they propose gives tax preference to their foreign investments. That’s how territoriality works: we would tax their American income and not tax their foreign income. Yes, they would give home investments a disadvantage while wrapping themselves in the flag.
What’s their defense for twisting words this way? That they are now free to move their “tax home” offshore, they say, so they can pay even less tax. That is, we must give them an advantage to stay at home because they are Benedict Arnold corporations, ready to desert their country if we don’t bend to their will. And who’s to say we won’t? We have let the multinationals shift income to tax havens with impunity for decades. And we’ve been loosening the rules all along.
Here’s the story: “Last month, the Business Roundtable, which represents mostly big businesses, started a separate lobbying campaign, called Home Court Advantage, to adopt a territorial tax system as well as a lower rate.” http://www.cnbc.com/id/100705734/page/2
The Center for New Revenue 