More than 40 House Democrats urged the House Ways and Means Committee chair Tuesday to include international tax reforms proposed by President Joe Biden's administration in a multitrillion-dollar reconciliation package to help strengthen American competitiveness in the global economy.

Increasing the tax rate applied to global intangible low-taxed income, or GILTI, applying the tax on a per-country basis and lowering the differential between the tax on GILTI and the eventual corporate rate should be priorities, the legislators said in a letter to Rep. Richard Neal, D-Mass.

Lawmakers also should look to eliminate an exemption in the tax laws for 10% of a business's foreign qualified business asset investment, or QBAI, and strengthen laws to prevent profit shifting and the offshore inversions of U.S.-based companies, the letter said.

The letter was led by Ways and Means Committee Democrats Lloyd Doggett of Texas and Judy Chu and Jimmy Gomez of California. They asked Neal to include those reforms in the legislation to be considered by the panel beginning Thursday. Strengthening the U.S. tax system on multinationals' foreign income should influence other countries to do the same, the lawmakers said.

"While the specifics of legislation to be adopted by other countries is not yet known, we do know that when America leads, we can significantly influence what others do to end the race to the bottom," the letter said.

Copyright 2021 Portfolio Media, Inc. Content may not be shared, reproduced, modified, published, distributed, or otherwise recreated in any fashion without the express prior written consent of Portfolio Media, Inc.