If U.S.taxing authorities did not limit the amount of the foreign tax credit to the equivalent amount of the U.S.tax

Question

Quizplus · Accepted Answer

Limiting the foreign tax credit to the equivalent amount of U.S. tax prevents U.S. taxpayers from subsidizing the tax liabilities of U.S. multinational corporations (MNCs) on their foreign earned income. This ensures that MNCs pay an appropriate level of tax on their foreign income without shifting an undue portion of their tax burden onto U.S. taxpayers.

If USTaxing Authorities Did Not Limit the Amount of the Foreign