Gulf carriers may be in focus under foreign airline U.S. tax exemption cut

Gulf carriers may be in focus under foreign airline U.S. tax exemption cut:

"A U.S. congressional proposal that would eliminate income tax exemptions for certain airlines could affect major Gulf carriers, potentially worsening an international spat between U.S. airlines and their Middle East rivals.

U.S. airlines have been petitioning the federal government for years to intervene in what they see as unfair competition by the three major Gulf carriers.

The proposal, tucked deep in the Senate tax-cut plan, calls for airlines headquartered in foreign countries to pay the U.S. incorporate tax rate if: 1) the carrier’s home country does not have an income tax treaty with the United States and 2) the carrier’s country of origin has fewer than two arrivals and departures, per week, operated by major U.S. airlines."



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