Buried in the budget bill passed by Congress last week was a provision that will have a profound impact on U.S. business ties with South Africa. On Jan. 1, American firms will no longer be able to deduct taxes paid to the South African government from their U.S. tax bill. That will be a costly blow to the 163 U.S. companies, including Mobil and Union Carbide, that still operate in South Africa. Taxes will consume an estimated 72% of the money that U.S. firms earn in South Africa, vs. 57.5% before the new law. The rise is likely to speed the...
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