Sanctions threat by EU on US tax breaks

[Judi Lynn]

Sanctions threat by EU on US tax breaks
Thursday March 16th 2006
Conor Sweeney
European Editor

THE EU has warned that a row over controversial American tax breaks could trigger a new transAtlantic trade war. Special sanctions will be imposed on US imports if Washington fails to lift the tax breaks, which the EU believes have given many American competitors an unfair advantage.

The move follows the approval by the World Trade Organisation in Geneva of a complaint taken by all 25 member states of the EU linked to Washington's controversial Foreign Sales Corporation tax.

In the long-running dispute, the EU has claimed that the facility which allows firms like Boeing and Microsoft to offset global transactions against domestic US tax amounts to indirect US subsidies.

European firms were not entitled to similar auditing techniques, the EU argued. The latest threat comes after a WTO panel of experts backed the European claim that changes to the US regime had not gone far enough.
(snip/...)

http://www.unison.ie/business/stories.php3?ca=191&si=1581037

[Divernan]

1. Bush tax breaks/loopholes unfair advantage to wealthy-sound familiar?

Since EU standard of living so much higher for employees there - you know, healthcare and pensions, American corporations must have HUGE competitive advantages - outsourcing work to less than minimum wage costs overseas, wriggling out of their pension obligations and dumping them on US taxpayer funded federal pension backup plan, limiting US employees to so few hours they don't qualify for health insurance coverage - or charging employees through the nose for pretty poor coverage.

Ah yes, the GOLDEN AGE for corporations flying the Stars and Stripes, but ripping off the US taxpayers with Bush's tax loopholes, corporate welfare/subsidies, etc., and their major stockholders and execs, socking it away in taxfree Cayman Islands.

Too bad we can't impose sanctions on our GOP House and Senate and Bush for our ungodly deficits and tax discrimination against all of us except the uber rich & Big Bidness!

On edit: Hi Judi Lynn - as morning breaks we wonder what fresh hell Bush will bring us today, right?