Foreign Sales Corporation update at WTO

[Max Sawicky]

The export subsidies may not be great tax policy, but they
aim to (very) roughly compensate for what the EU does already
with its VAT:  exempt exports from tax and fully tax imports.
So "needs to be destroyed" is a little strong, I would say.
The amount of revenue involved suggests the measure is
pretty innocuous in the grand scheme of things.

Much more interesting is the political impasse that results
if the new law does not pass muster with the WTO.  It's
hard to imagine the Congress knuckling under to the WTO,
all their free trade rhetoric notwithstanding.  This is nearly
as great a threat to WTO as agitation from the left.

mbs

[I thought I had cc'd lbo when I sent this to pen-l. Apologies for the
oversight to those not on that list. Also, here's the link for the Ways and
Means bill being drafted that is mentioned below. It needs to be destroyed]