Max Baucus: “This important legislation attempts to comply with the World Trade Organization, WTO, rulings on the Foreign Sales…”

“This important legislation attempts to comply with the World Trade Organization, WTO, rulings on the Foreign Sales Corporation, FSC, Extraterritorial Income, ETI, benefit in order to prompt the European Union to rescind trade tariffs currently placed on United States exporters. It would repeal an export provision in the United States tax code that has been ruled an unfair subsidy and therefore does not comply with the WTO. In addition this bill seeks to preserve jobs and production activities in the United States via the simplification of international tax laws and a mix of investment incentives. A $10 million tobacco buyout, minus the Food and Drug Administration's regulation, is also incorporated within this bill. This bill would replace the current export subsidy that has been ruled unfair by the WTO with a new $77 billion tax break on manufacturing income.”