In Search for Deficit Busters, CBO Eyes Offshore Profits

With Congress searching for ways to reign in the federal deficit, the Congressional Budget Office (CBO) has a suggestion: Change the way offshore profits of multinational companies are taxed.

While biopharma and other multinational companies might chafe at the bit, the CBO noted that moving closer to a purely worldwide corporate tax system that limits or eliminates deferral of U.S. taxes on income earned abroad could boost tax revenues by more than $100 billion over a 10-year period.