Most modern tax law systems have already implemented rules to ease the double taxation of corporate profits, both at the corporate and shareholder level. The Bush administration recently proposed legislation pursuing the same goal. Under this proposal, profits previously taxed at the corporate level would either result in tax free dividend distributions or an increase of the shareholder's basis in the stock. While eliminating the double tax burden on corporate profits might be appreciated in light of tax efficiency arguments, the proposal discriminates non-US corporations and non-US taxpayers. Additionally, it is part of the US administration's tax reduction plan that mainly benefits high-income taxpayers. Consequently, the proposal causes debate among economists, lawyers and politicians.