House Ways and Means Approves ETI Repeal Legislation

On October 28, 2003, the House Ways and Means Committee cleared the American Jobs Creation Bill of 2003 (HR 2896) by a vote of 24 to 15. In addition to a three-year phased repeal of the extra-territorial income (ETI) provisions of the Code, 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 phased three percentage point tax rate cut for domestic manufacturers and small corporations. The bill also includes a number of provisions modifying the international tax regime of the Code, simplifying S Corporation taxes, providing corporate AMT relief, lowering the depreciable life for leasehold and restaurant improvements and additional tax breaks for business. The overall ten-year cost of $128 billion is only partially offset by ETI repeal and $25 billion in revenue raisers. Among the list of revenue raising provisions are several provisions with respect to tax shelters and expatriation. The timing of a House floor vote is not certain, with indications that some votes may need to be won over before a floor vote will be scheduled. The Senate Finance Committee passed its version of ETI repeal legislation on October 1. The Senate version is fully paid for. The European Union continues to state that it will impose sanctions unless an ETI repeal bill passes Congress this year.


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).

All stories by: Wolters Kluwer Tax and Accounting