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Small Breaks in House Plan Soften Foreign Tax Hit for Companies

Sept. 14, 2021, 9:05 PM

U.S. companies would get a break on taxes on income they earn abroad under some smaller, less-noticed parts of House Democrats’ international tax plan—softening the impact of the higher tax rate they would pay.

The plan, released Monday by Ways & Means Committee Democrats, is part of a broader revenue-raising package aimed at supporting Democrats’ $3.5 trillion spending proposals on climate change, job creation, and other issues.

Under the House international tax proposals, the U.S. minimum tax on foreign income—known as global intangible low-taxed income, or GILTI—would rise to 16.5625% from the current 10.5%. But that increase would be partly ...

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