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Executive Summary: Making American Companies More Competitive

Executive Summary: Making American Companies More Competitive
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Ways & Means Tax Bill a Step in the Right Direction

The Committee on Ways and Means recently approved a bill recentlythat repeals the preferential tax rate for export-related corporateincome: the Extraterritorial Income Act (ETI), formerly ForeignSales Corporation (FSC). This legislation is a step in the rightdirection towards making the U.S. tax code more competitive amongour major trading partners. ....

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Making American Companies More Competitive

A "territorial" tax system that taxes only income earned insidenational borders would allow U.S.-based companies to compete on alevel playing field with foreign competitors, particularly ifaccompanied by a significant reduction in the corporate tax rate.If Congress lacks the political will to engage in fundamentalreform, it should at least go as far toward a territorial taxsystem as possible. ....

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