How the Worldwide Tax System Hits US Companies Abroad

How does the United States tax its multinational corporations on income earned overseas — and why does it matter in 2026? In this episode, Lucas and Luna break down the shift from a worldwide tax system to the current hybrid model created by the Tax Cuts and Jobs Act. They explain the Global Intangible Low-Taxed Income (GILTI) regime, how it treats foreign earnings, and why it pushes companies to relocate intellectual property. Using the concrete example of a mid-sized pharmaceutical firm, they show how the effective tax rate on foreign income can vary by jurisdiction. They also discuss the OECD's global minimum tax of 15 percent and how it interacts with US rules. The episode closes with a look at what a potential return to a pure worldwide system might mean for competitiveness and tax revenue. #TaxPolicy #Economics #CorporateTax #WorldwideTaxSystem #GILTI #TCJA #GlobalMinimumTax #OECD #InternationalTax #MultinationalCorporations #IntellectualProperty #TaxCompetition #TerritorialTax #EffectiveTaxRate #FexingoBusiness #BusinessPodcast #TaxPodcast #FiscalPolicy Keep every episode free: buymeacoffee.com/fexingo