Referred to the House Committee on Ways and Means.
The bill amends section 250 of the Internal Revenue Code to change the deduction percentage applied to foreign-derived intangible income (FDII). It substitutes 50 percent for 37.5 percent, effectively preventing a scheduled reduction and restoring a higher FDII deduction, with the change effective on enactment.
Liberals stress revenue loss and fairness; conservatives stress competitiveness.
Narrow technical tax cut could attract business supporters, but revenue loss and ideological divides make House floor passage uncertain.
The bill amends section 250 of the Internal Revenue Code to change the deduction percentage applied to foreign-derived intangible income (FDII).
It substitutes 50 percent for 37.5 percent, effectively preventing a scheduled reduction and restoring a higher FDII deduction, with the change effective on enactment.
Administratively simple and targeted, but revenue cost, lack of compromise features, and Senate procedural barriers lower overall prospects unless packaged in a larger agreement.
How solid the drafting looks.
Liberals stress revenue loss and fairness; conservatives stress competitiveness.
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals stress revenue loss and fairness; conservatives stress competitiveness.
Likely critical.
They will view the measure as a corporate tax preference that primarily benefits multinational companies and wealthy shareholders.
They will worry about lost revenue and weaker tax equity without clear offsets.
Cautiously mixed.
They see potential competitiveness gains for U.S. firms but are concerned about budgetary cost and fairness.
Support depends on offsets, clarity, and anti-abuse rules.
Generally supportive.
They will argue the bill strengthens U.S. tax competitiveness, rewards innovation, and helps domestic firms compete globally.
Concerns focus on fiscal discipline and preventing abuse.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Administratively simple and targeted, but revenue cost, lack of compromise features, and Senate procedural barriers lower overall prospects unless packaged in a larger agreement.
The bill has not accumulated any surfaced votes yet.
Liberals stress revenue loss and fairness; conservatives stress competitiveness.
Administratively simple and targeted, but revenue cost, lack of compromise features, and Senate procedural barriers lower overall prospects…
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