An amendment denying foreign tax credits to corporations that operate in countries that support or harbor terrorists was passed unanimously in the Senate last Friday. Sen. Charles Grassley (R.-Iowa) sponsored the bill.
The amendment, directed against Syria and Libya and supported by various Jewish organizations, affects corporations in countries recognized by the Export Administration Act as terrorist-supporting countries. These nations are Libya, Syria, Cuba, Iran and South Yemen. Sen. Paula Hawkins (R.-Fla.) and Sen. Alfonse D’Amato (R.-N.Y.) proposed the amendment be revised to include Angola because that country is not recognized by the United States.
The amendment was attached to a bill to extend the debt ceiling in the Senate and will be considered by the House during their debate on the debt ceiling. Two months ago, the amendment was attached to a tax reform bill, but failed to pass Congress.
If corporations are denied foreign tax credit, it will be a disincentive for those companies to continue operating in a given country, a spokesman for Grassley told the Jewish Telegraphic Agency. The amendment will also prevent terrorist-supporting countries from using tax revenue to subsidize training terrorists.
The Archive of the Jewish Telegraphic Agency includes articles published from 1923 to 2008. Archive stories reflect the journalistic standards and practices of the time they were published.