Companies to End Fight Against Tax Bill

Several large U.S. companies signaled they will drop their opposition to Democratic proposals to end some tax breaks on overseas profits, in order to help advance a bill that would renew lapsed tax incentives including the research tax credit.

In a letter Monday to Senate leaders, 22 companies, including Bank of America Corp., American Express Co., General Electric Co. and Raytheon Co., threw their support behind a recent proposal from Sen. Max Baucus, a Montana Democrat, to extend the research tax credit and other tax breaks.

Those cost of these extensions would be offset in part by ending tax breaks on overseas income, raising $11.5 billion.

Also signing the letter were aerospace and manufacturing firms that depend on the research tax credit, and financial services firms that are keen for renewal of a separate tax break, also expired, on overseas financing income.

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