Visiting Professor Rebecca Kysar was quoted in a CNN article about the Trump administration’s proposed tax plan.
The ministers objected specifically to a new 20% tax on payments from U.S.-based multinationals to their foreign affiliates, saying the measure in the House bill could “discriminate in a manner that would be at odds with international rules.”
They said the provision could also tax the profits of foreign businesses that do not have a permanent base in the U.S.
A second measure also drew objections. It would subject cross-border transfers within banks and finance companies to a 10% tax.
“These two … present [World Trade Organization] problems, said Rebecca Kysar, a professor at Fordham University. She said the measures could be considered to be discriminatory.
The finance ministers said they opposed another measure in the Senate bill that could benefit American companies by subsidizing their exports.
Kysar said the more income a U.S. company makes from exports, the greater the share of its income will be taxed at 12.5% instead of the general corporate rate of 20%.
