Effective October 1, 2012, QUALCOMM Incorporated completed a corporate reorganization in which the assets of certain of its businesses and groups, as well as the stock of certain of its direct and indirect subsidiaries, were contributed to Qualcomm Technologies, Inc. (QTI), a wholly-owned subsidiary of QUALCOMM Incorporated. Learn more about these changes

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Business Climate

U.S. Tax Policy

The U.S. is one of the only industrialized countries with a worldwide taxation system. This system penalizes U.S. companies and places them at a disadvantage to their overseas competitors. While lawmakers spend time debating the various ways to boost U.S. competitiveness, our share of the global market is being compromised and our ability to benefit by doing business in countries with lower tax rates is diminishing.

Most of our major trading partners have abandoned the worldwide tax system in favor of a territorial system of taxation, which means that the money is taxed where it’s earned. Adopting a competitive territorial system would put U.S. businesses on an equal footing with their global competitors and encourage more investment and job creation at home.

One step that Congress can take in the short term is to allow U.S. companies to repatriate foreign-earned income at a reduced rate. It is estimated that U.S. companies have accumulated more than $1 trillion in earnings offshore and this money is not benefitting the U.S. economy. Allowing companies like Qualcomm, which earns 95 percent of its income overseas but employs more than 75 percent of its employees inside the U.S., to repatriate foreign income would result in a private sector stimulus far greater than the government’s own stimulus package.

Qualcomm applauds Congressmen Kevin Brady and Jim Matheson for introducing the bipartisan Freedom to Invest Act. This repatriation bill provides a smart, sensible approach to helping U.S. businesses. This Act will encourage the private sector to inject new capital into the U.S. economy, and promote job creation at home. This legislation warrants the support of members of both parties in Congress.

Congress has a choice. It can provide businesses with incentives to invest their global earnings here at home or preserve the status quo and keep the money overseas.