One of the most heated debates among Americans is whether to close so-called corporate tax loopholes. However, it is important to remember that these so-called loopholes were added to the U.S. Tax Code as incentives to promote business and investment, both domestically and internationally. Therefore, removing those provisions could have significant implications for South Florida,
One of those “loopholes” is the inventory property sales credit, which benefits multinational corporations with operations in high tax foreign countries. Since the foreign income of American companies is taxed in the country in which it is generated, the U.S. gives a tax credit for that amount in order to avoid double taxation. The cost to the government of this credit on a five-year projection is estimated at $16.7 billion.
