The new tax bill eliminates some corporate tax relief, and thereby avoids a contentious tax dispute with the EU. The BBC reports:

In a long—running spat, the US and EU had clashed over tax breaks for US exporters, which the World Trade Organization (WTO) ruled were illegal.

The EU was set to implement retaliatory tariffs on US goods from next week.

Brussels had warned that it would slap a 14% import duty on US goods worth some $2.4bn.

US Trade Representative Rob Portman said that the US had now "taken the steps necessary to comply with its WTO obligations in this matter".

Now that we have put on the white hat in a confrontation with the EU, we should press our case for ending their loan guarantees for Airbus.

Hat tip: Joe Crowley   

Thomas Lifson    5 12 06