Public Policy: Those Foreign Profits

In Washington this week the Senate Finance Committee will begin debating a New Frontier tax proposal with far-reaching consequences in foreign trade.

The argument swirls around the manner in which U.S. firms should be taxed on their overseas profits. Of all the Kennedy Administration's economic measures, none has evoked such vehement and unanimous opposition from U.S. business.

Payment in Full. Already passed by the House, the Administration's proposal would radically change the rules under which .U.S. business operates abroad. At present, a firm pays U.S. corporate income tax only on whatever part of its foreign earnings it "repatriates" to the U.S....

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