Monday, February 13, 2006

EU tries to DeRail our Economy and tell us what THEY will NOT Allow US to do

EU warns U.S. to reform export tax program
By DONNA BORAKUPI Business Correspondent
WASHINGTON, Feb. 13 (UPI) --

The European Union warned Monday it would seek retaliatory action against the United States if Washington refuses to comply with the World Trade Organization's ruling on eliminating export tax breaks in 90 days.
Brussels argues that U.S. federal tax subsidies included in legislation known as the "Jobs Act" unfairly assists exporters like Boeing Company and the General Electric Company. The EU claims that these tax breaks cause an unfair advantage against European competitors like the Toulouse-based Airbus Industries.
The European Commission, the EU's executive branch, argues that U.S. domestic law allows for payments of export tax subsidies under preserved "transition" and "grand-fathering" clauses, a policy Brussels claims allows U.S. exporters to obtain export subsidies on future products even if they have not been built or exported. They also say these tax breaks will go well beyond the expiration of the law in 2006.
The WTO's ruling backs a previous decision made by the dispute settlement body, which concluded that despite changes made to U.S. law, Washington has yet to abide by recommendations made in its earlier verdict.

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