PRESIDENT EXPECTED TO SIGN EXPORTER TAX BILL
' The White House has received legislation passed by Congress that continues tax breaks for U.S. companies that make or sell their products abroad.
Congress passed the legislation in response to demands by the World Trade Organization, to change a law enacted in 1984 — the U.S. Foreign Sales Corporation tax law — on grounds that grants U.S. businesses illegal export subsidies.
Sixteen years ago, Congress passed the program to offset a European Union tax rebate for its exporters. The program permitted U.S. companies to reduce income taxes by 15 percent through export subsidiaries set up in offshore jurisdictions such as Barbados and the Virgin Islands.
The latest legislation cleared by Congress maintains the 15 percent tax cut, will cost the government roughly the same amount each year, and will meet WTO requirements.
President Clinton is expected to sign the measure shortly.