International Competition for American Jobs Act

S. 1605 would amend the Internal Revenue Code to change how the federal government taxes U.S. companies and their foreign operations. The bill would make permanent several tax provisions that currently expire, including rules for controlled foreign corporations and deductions for foreign-derived intangible income. It would also modify foreign tax credit rules and eliminate certain income categories that trigger taxation of foreign subsidiaries' earnings.

Proponents argue these changes would help American companies compete globally and encourage investment and job creation in the United States. The bill would affect primarily large multinational corporations and their international tax planning. If enacted, it could reduce taxes on certain foreign business activities, though the practical impact on average citizens would be indirect, potentially through effects on corporate investment, wages, and economic growth. The bill is currently in the Senate Finance Committee and has not yet been voted on.