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October 08, 2004
Feds poised to clamp down on EDC without delay
Tax breaks for money earned on U.S. mainland would cease this year, rather than next, if bill becomes law
By PATRICK JOY
Friday, October 8th 2004
ST. CROIX - The federal government moved forward Thursday with drastic measures to close loopholes in the territory's Economic Development Commission's tax-incentive program - just hours after Acting Gov. Vargrave Richards incorrectly announced that the territory had won a one-year reprieve from the crackdown.
While the territory did manage to temporarily dodge enforcement of the strict new residency rules, it did not succeed in postponing the second, and equally important, prong of the federal government's attack on the EDC program.
That attack - aimed at removing tax breaks for income that Virgin Islands companies earn on the U.S. mainland - could hit this year if Congress passes, and President Bush signs, the American Jobs Creation Act, to which the EDC reform measure is attached in amendment form.
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Posted by afinta at October 8, 2004 05:32 PM
