Eviscerating the Foreign Tax Credit Limitations and Cutting the Repatriation Tax - What's ETI Repeal Got to Do with It?
J. Clifton Fleming Jr. & Robert J. Peroni, 𝘌𝘷𝘪𝘴𝘤𝘦𝘳𝘢𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘍𝘰𝘳𝘦𝘪𝘨𝘯 𝘛𝘢𝘹 𝘊𝘳𝘦𝘥𝘪𝘵 𝘓𝘪𝘮𝘪𝘵𝘢𝘵𝘪𝘰𝘯𝘴 𝘢𝘯𝘥 𝘊𝘶𝘵𝘵𝘪𝘯𝘨 𝘵𝘩𝘦 𝘙𝘦𝘱𝘢𝘵𝘳𝘪𝘢𝘵𝘪𝘰𝘯 𝘛𝘢𝘹 - 𝘞𝘩𝘢𝘵'𝘴 𝘌𝘛𝘐 𝘙𝘦𝘱𝘦𝘢𝘭 𝘎𝘰𝘵 𝘵𝘰 𝘋𝘰 𝘸𝘪𝘵𝘩 𝘐𝘵?, 104 Tᴀx Nᴏᴛᴇs 1393 (2004).
This report analyzes the two bills, about to be taken up by House and Senate conferees, that would repeal the ETI regime. While agreeing that ETI repeal is proper, the authors think that several provisions are not connected to the ETI problem and are poor tax policy. They list two provisions - the House bill's reduction of the number of foreign tax credit limitation baskets and both bills' temporary repatriation tax cut - as the most egregious and argue that they will undermine the fairness and economic efficiency of the tax system, will do little to simplify international tax rules, and will provide unneeded subsidies to multinationals.
Reprinted in 35 Tax Notes Int'l 1081 (2004).
104 Tax Notes