$10 Billion Tax Increase Will Disrupt Cross-Border Tax Planning
By Robert E. Culbertson, Christopher D. Van Blarcum, David Makso, Ben Shreck & Andrew M. Short
On August 10, 2010, President Barack Obama signed into law H.R. 1586, the Education Jobs and Medicaid Assistance Act of 2010 (the Act), providing generally for state fiscal relief and education jobs funding. The Acts revenue offsets include significant new restrictions on the availability of the foreign tax credit, as well as several other significant international tax provisions. Prior to the Acts passage, President Obama stated that the offsets will close tax loopholes that encourage corporations to ship American jobs overseas. The Joint Committee on Taxation estimates that these international tax provisions will raise $10 billion over the next ten years.