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Sarbanes-Oxley News & Developments
Corporate Tax WindfallHow to spend it?
> > The U.S. Senate Finance Committee approved a bill that would repeal export tax subsidies in an attempt to avoid slowdown with the European Union over trade rules. The bill would use the money generated by ending the subsidies - $50 billion over 10 years - to cut the corporate tax rate for manufacturers from 35% to 32%.
The measure is an apparent response to the World Trade Organization, which said the tax breaks violate trade rules and led the European Union to impose $4 billion in import tariffs on U.S. goods.
The bill also includes a number of international tax reforms that will make it easier for U.S. multinational companies to take advantage of foreign credits.
Lawmakers are hoping the temporary lower tax rate will lure as much as $400 billion in foreign profits back to the United States and encourage companies to invest this windfall in new plants, equipment, and employees.
Source: CFO
Published:2003-10-03
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