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Committee on Ways and Means For Immediate Release WTO Announces FSC-ETI Arbitration Decision Level of Retaliation Imposed on U.S. Calls for Changes in the Tax Code WASHINGTON - Ways and Means Chairman Bill Thomas (R-CA) issued the following statement today following the World Trade Organization’s (WTO) Foreign Sales Corporation-Extraterritorial Income Act (FSC-ETI) tax arbitration decision: “The WTO arbitration panel decision should not come as a surprise but rather as a reminder that the fundamental problems in our tax code need to be addressed now. The U.S. could face more than $4 billion in retaliation annually unless we repeal the FSC-ETI tax regime. This penalty is just one more reason why our tax code needs a fundamental reform. “I have introduced legislation that addresses this problem by repealing FSC-ETI while modernizing sections of the U.S. Tax Code to enhance America’s international competitiveness. “We must recognize that not only has the FSC-ETI been ruled WTO-inconsistent, but also that it is one of several archaic provision in the U.S. Tax Code. The longer we wait to reform our uncompetitive tax code, the more jobs we lose to our foreign competitors. Let’s take this opportunity to assure that our tax laws make the U.S. the best place in the world to run a business and create good, high-paying jobs.” |