The Morning Ledger: Foreign Firms May Get ‘BEAT’ Up by New U.S. Tax Provision

Executives at foreign companies worry that a provision of the new U.S. tax law called the base-erosion and anti-abuse tax — or BEAT — will hurt their firms’ finances, write the WSJ’s Sam Schechner and Nina Trentmann.

Foreign companies broadly welcomed the reduction in the U.S. corporate tax rate to 21% from 35% previously, enacted as part of the Republican tax overhaul. However, the new BEAT provision could damp — or even completely offset — any gains that foreign multinationals might expect from the lower U.S. rate.

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