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Manufacturers with international provide chains complain that the tax will discourage them from production in The usa because cross-border payments to affiliated parts suppliers will finish up becoming additional to A.
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Foreign taxes paid over the earnings will be obtainable for use being an offsetting foreign tax credit, but with acceptable changes to replicate the diminished volume of US tax.
The aim of the base erosion tax is to circumvent multinational companies from lessening their US taxes by "stripping" earnings through the US border by producing payments to foreign affiliates that can be deducted in the United States.
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