Lawmakers Unveil Tax Plan on Intellectual Property

The legislation floated on Wednesday would give companies an ultralow 10% tax rate on income they generate from patents and other intellectual property. Supporters hope the move will halt a trend that has seen many American multinational firms locate more of their valuable intellectual property in lower-tax countries, even when it is developed in the U.S. That has allowed them to avoid the relatively high U.S. corporate tax on the resulting profits, which often accumulate offshore. Measures to stem the practice have been ineffective.