Corporate Income Tax

Written by Lori Covington
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Filers of corporate income tax have a lot to cheer about this year (and next), thanks to the U.S. Senate's approval of a corporate tax bill that will put over $150 billion into corporate pockets over the next ten years. The bill, originally inspired by trade sanctions by the EU against the U.S. has grown into a monolith of corporate tax breaks, spanning industries and special interest groups alike.

U.S. corporate income tax payers are receiving these extra benefits because the World Trade Organization has outlawed United States export subsidies to the tune of around $5 billion dollars, ruling U.S. exporting regulations to be in violation of the rules of the WTO. (This battle has raged quietly for decades, with the U.S. creating "new" exporting systems that are then ruled illegal by the WTO.)

In response to the most recent WTO ruling, The EU has also created tariffs on over 1,000 U.S. products for export. These tariffs, called "retaliatory" in this nation's press, would probably be considered consistent with enforcing the WTO regulations in the rest of the world. They started in March at a rate of five percent and are rising one percent per month over the next year.

More Corporate Income Tax Breaks

Although the bill supposedly compensates exporters for the actions of the WTO and the EU, it has been called a boon to special interest groups. It also impacts the recent trend towards outsourcing. Corporate income tax laws will be greatly affected, with manufacturers standing to gain much by the new bill. The energy sector also received 14 billion dollars in tax incentives for energy production.

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