"foreign tax credits that ...to offset taxes paid on foreign income earned in their host countries"

[underpants]

Biz Groups Turning Against 'Extenders' Bill

The U.S. Chamber of Commerce became the first major business group to officially oppose the larger bill, with chief lobbyist Bruce Josten labeling it a "job-killer" because of tax increases on investment partnerships, small businesses and multinational corporations.

That is significant because the Chamber has been a vocal supporter of tax breaks in the bill such as the research and development credit; active financing exemption from U.S. tax on overseas lending activities; and preservation of "look-through" rules enabling firms to transfer money among foreign subsidiaries without triggering U.S. tax. Together, renewal of those provisions would provide U.S.-based firms with about $11 billion in tax relief in 2010, according to the Joint Committee on Taxation.

In particular, several revenue-raisers affecting companies' overseas profits are vexing business groups, in part because they were largely unexpected. Industry officials said the "Promote America's Competitive Edge" coalition, which consists of the Chamber, Business Roundtable, National Association of Manufacturers and National Foreign Trade Council, was expected to submit a joint letter later today opposing tax increases on U.S. multinationals, totaling $14.5 billion.

The changes deal mostly with the foreign tax credits that companies receive to offset taxes paid on foreign income earned in their host countries, which Democratic tax-writers said were rife with loopholes.