The Wall Street Journal: Treasury lays out corporate tax regulations, offers partial solution to foreign tax quandary

WASHINGTON — The Treasury Department issued long-awaited corporate tax regulations on Wednesday, partly accommodating companies’ pleas for help with an unexpected consequence of last year’s tax law.

Under the proposed rules, some companies will still effectively face U.S. taxes related to income they earn in high-tax foreign countries, an outcome that seems contrary to what Congress promised. The rules offered companies what a senior Treasury official described as a 50% solution.

“The proposed guidance provides clarity and certainty for taxpayers in applying the new law, as well as modernizes current regulations and repeals out-of-date provisions,” said Treasury Secretary Steven Mnuchin.

The rules, which will likely reduce federal revenue, address an issue that is been bothering companies all year.

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