House and Senate negotiators agreed to a corporate tax bill that repeals the Foreign Sales Corporation-Extra Territorial Income Tax regime, and cuts taxes across a broad swath of businesses.
The pact ends a multi-year effort to eliminate the Domestic International Sales Corporation, FSC and ETI tax breaks that the World Trade Organization ruled illegal and resulted in the European Union imposing sanctions on U.S. products.
The final bill includes incentives for companies to reinvest their earnings in the U.S., extends small business tax options, and includes a number of reforms to international tax laws that will help make U.S.-based companies and workers more competitive in world markets. It also contains provisions addressing tax shelters, deferred compensation arrangements and a decreased limit on the expensing of certain SUVs by small business owners.
"This bill is a good solution," said Sen. Chuck Grassley, R-Iowa, who wrote the Senate version of the bill. "It's not only the first step toward ending the euro tax on America's exports, but it also gives a real shot in the arm to U.S. factories and farmers, at home and abroad. This bill was three years in the making, and we need to finish the job."
"On the whole, this bill will help make U.S. companies of all sizes more competitive in global markets by reducing taxes and simplifying the tax code," said Bruce Josten, executive vice president of the U.S. Chamber of Commerce. "Lawmakers must pass this bill before leaving town for the elections -- and without allowing politics over issues unrelated to corporate tax structure to hold it hostage."
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access