US Congress Focuses On FSC Replacement
At a press briefing in Washington on Wednesday, Senate Finance Committee
Chairman Max Baucus, (D - Mont.) said that a bipartisan group of House
and Senate members are in the final stages of writing matching bills that
aim to simplify US international tax policy. "The real point is to make sure American companies are not disadvantaged,"
Baucus said. He added that the World Trade Organization's ruling on the
US FSC Repeal and Extraterritorial Income Exclusion Act increases the
need to update international tax policy. The US has appealed against the
WTO ruling, which upheld the EU's objections to legislation passed in
2000 to replace the original, banned FSC regime, but few expect that the
appeal will be successful. Hence the need for a new approach to the international tax regime for
US companies. Congressmen at the briefing said they plan to simplify and
reform international tax policy in order to make US multinational companies
more competitive abroad. House Ways and Means Committee members Amo Houghton, R-N.Y., Sander M.
Levin, D-Mich., and Sam Johnson, R-Texas, were planning to spend December
20 putting the final touches on 30 provisions designed to eliminate tax
complexity and barriers to international competitiveness. "It's the
right thing to do; we've got to get at this thing now," Houghton
said. Beats Christmas shopping, anyway. .
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