The WTO can authorize retaliatory sactions for many reasons....they did so on the basis that the DISC, FSC and the ETI were "impermissible export subsidies"...they just happened to be tax related. Removing the Corporate Net Income Tax from the equation will remove but one arrow from the quiver.....they'll just have to think up a different rationale.
I think the bigger threat will come from the OECD. They're the ones pushing int'l tax harmonization and information sharing. Their model treaty is frightening...calls upon member nations to provide information even if they have no internal use for it. Would basically require us to keep the tracking and reporting systems in place, if the model treaty is used for any bilateral agreements.
Neither the WTO or the OECD can directly impact our tax law.....but they do work hand in glove, probably would cooperate, and the WTO has demonstrated a propensity to make life real uncomfortable by authorizing retaliatory tariffs.....until our elected officials buckled and changed the tax law.
To an extent, they're playing with fire. We removed the ETI provision, which accounted for just over 49 billion in 'subsidy' over the course of 10 years. The replacement provisions of HR 4520, granted subsidies of almost 108 billion....an increase of over 119%...ha, take that.
Ken Dam correctly noted that "there is nothing more fundamental to a nation's sovreignty than the way they raise revenue"...and to the extent that we can minimize the influence of unelected, unresponsive int'l bureaucrats, we'll be a whole lot better off....and they'd better becareful how far they push.....seems we're dishing it back at them in spades. FairTax would be the ultimate, in your face, kinda deal.
Thank-you. It is disturbing still. We have idiots in congress that don't want to confirm an ambassador who has been critical of the UN. Those same idiots would allow the WTO to run roughshod over us if it appeases European interests because, after all, those idiots like foie gras. The reason the subsidy was increased is because no one in the media understands or cares. If the WTO raises a stink about the fair tax (and it will) the appeasers will come out with both hands in their pants and cite all of the reasons it is bad for us in the "world community". Never mind that we fund the WTO anyway.