Territorial System
The plan also calls for the U.S. to switch to a territorial tax system in which the government would exempt from taxation most profits earned outside the country. The U.S. now taxes foreign profits when companies bring them back home, after allowing credits for foreign taxes paid.
Camp said he wanted to consider the status of profits currently held overseas as part of his broader bill. Other Republicans, including Cantor and Representative Kevin Brady of Texas, want a one-time holiday on repatriated profits. They are supported by companies such as Cisco Systems Inc., Microsoft Corp. and Pfizer Inc.
Camp, who has been holding hearings and closed-door bipartisan meetings on the tax code said he didn't have a "specific timeline" for proposing an overhaul measure.
"We're continuing to work on it, but I'm not putting out a particular timeline," he said.
Treasury Secretary Timothy Geithner said yesterday that the administration would focus more on corporate taxation after the current debate over raising the national debt limit is finished.