To amend the Internal Revenue Code of 1986 to remove United States tax barriers inhibiting competitiveness of United States owned businesses operating in the European Community.

Amends the Internal Revenue Code with regard to foreign base company income to provide a special rule for U.S.-owned businesses operating in the European Community (which includes Belgium, Denmark, France, Greece, the Irish Republic, Italy, Luxembourg, The Netherlands, Portugal, Spain, the Federal Republic of Germany, and the United Kingdom).