Senate Finance Approves ETI Repeal Legislation

On October 1, 2003, the Senate Finance Committee cleared the Jumpstart Our Business Strength (JOBS) Bill (Sen 1637). Besides repealing the extra-territorial income (ETI) provisions of the Code over a period of three years, the legislation includes a number of tax cuts for business and additional revenue raisers beyond ETI repeal to pay for them. A key provision of the bill is a three percentage point tax rate cut for domestic manufacturers. The bill also includes a number of provisions modifying the international tax regime of the Code and additional tax breaks for manufacturers. Among the list of revenue raising provisions are an increase in the age limit at which unearned income of a child is taxed at the parent’s tax rate from 14 to 18 and an increase in the weight limits for vehicles subject to the depreciation limits for luxury automobiles. The bill becomes the first ETI repeal bill to emerge from a Congressional tax committee. There are two principal competing bills in the House, and neither has yet emerged from the Ways and Means Committee. There are significant differences in these three versions of the legislation. The European Union continues to state that it will impose sanctions unless an ETI repeal bill passes Congress this year and has indicated that a three-year phase-out is too long. With the House in recess next week, the current adjournment date set for the end of October, and a lot of appropriations work remaining, time is short to resolve these differences and to attend to the several pieces of tax legislation still working their way through the process.


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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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