The Senate began debating a corporate tax bill yesterday that affects The Boeing Co. and Microsoft Corp. The House simultaneously started reworking its corporate tax cut, significantly reducing its cost to the U.S. Treasury, and made tentative plans for debate later this month. The two corporate tax bills would eliminate a tax break that saved Boeing more than $195 million and Microsoft more than $89 million in 2002, among other U.S. companies.
It was declared illegal in international trade courts. The United States missed Mondays deadline to remove the tax break or face penalties, and the European Union began imposing sanctions that could total $300 million in key sectors by the end of the year. Both bills replace the $5 billion annual tax break now enjoyed by American exporters with tax cuts for manufacturers, and would make adjustments to tax rules for American multinational corporations. With changes under consideration by House tax writers, both bills also come close in covering the entire cost of new tax cuts.
News source: Seattle PI