Corporate Taxes Provisions

[GreenPartyVoter]

House and Senate lawmakers have used corporate tax bills designed to end a trade standoff with Europe to carry several other proposals. The different versions must be reconciled before Congress can send the bill to the president. Items added to the House and Senate versions include:

MANUFACTURING:

_House: Cuts the top corporate tax rate from 35 percent to 32 percent by 2007.

_Senate: Gives businesses of all sizes a 9 percent deduction from taxable income, a roughly 3 percentage point reduction in tax rates, to the extent companies manufacture in the United States.

CORPORATE PROFITS ABROAD:

_House: Allows companies to deduct 85 percent of profits held abroad when brought back into the United States during a limited time.

_Senate: Reduces taxes on money brought back to the United States from overseas operations to 5.25 percent for a limited time.

INTERNATIONAL TAX RULES:

_House: Makes it easier for companies to use foreign tax credits, including a change reducing the categories of income considered under international tax rules from 9 to 2.

_Senate: Also makes it easier for companies to use foreign tax credits, with a different provision letting companies hold on to those credits for up to 20 years.

http://apnews1.iwon.com/article/20040617/D8391EB81.html