House Ways and Means Committee Chairman Dave Camp's proposed rewrite of the U.S. approach to international taxation will require multinational companies to decide whether to continue a push for a repatriation holiday or wait for a broad overhaul of the tax code.

Draft legislation that Camp, a Michigan Republican, released yesterday would create a territorial system of taxation, in which the U.S. would only tax domestically generated income. The proposal sets up a tax system in which companies wouldn't lobby again for a temporary tax holiday because their overseas earnings would be out of reach of U.S. tax authorities.

The proposal is the first piece of a comprehensive U.S. tax code rewrite that Camp intends to unveil over an uncertain timeline. Meanwhile, Representative Kevin Brady, a Texas Republican, is trying to advance a bill establishing a temporary tax holiday that would let companies return offshore profits to the U.S. at a 5.25 percent rate.