Number: RS20746
Title: Export Tax Benefits and the WTO: The Extraterritorial Income Exclusion and Foreign Sales Corporations
Authors: David L. Brumbaugh, Government and Finance Division 
Abstract: Economic analysis suggests that provisions like FSC and ETI do little to increase exports but likely trigger exchange rate adjustments that also result in an increase in U.S. imports; the long-run impact on the trade balance is probably extremely small. Economic theory also suggests that export benefits likely reduce U.S. economic welfare.
Pages: 6
Date: April 24, 2007