Until 1993, the United States led the rest of the developed world in strengthening residence-based worldwide corporate and individual income taxation. Since 1994, however, this trend seems to have been reversed, at least in part, and similar developments are taking place overseas (e.g. in France and the United Kingdom). Thus, there seems to be a trend to reduce the scope of residence jurisdiction while increasing the emphasis on source jurisdiction. If this trend continues, it seems likely that both traditional territorial countries like France and traditional worldwide countries like the UK and the US will move toward territoriality and decrease the emphasis on their CFC rules. In the author's opinion, the reason for the trend to restrict CFC rules is political and economic, not legal. It is part of tax competition, specifically the competition to be the headquarters jurisdiction for multinationals. The author also thinks, however, that the US and other jurisdictions do not need to go down this road because the solution to the competitiveness issue is collaboration, not more competition.