A bill to discourage domestic corporations from establishing manufacturing subsidiaries in foreign countries for the purpose of avoiding Federal taxes by including in the gross income of the United States shareholders in foreign corporations the retained earnings of any such subsidiary which are attributable to manufacturing operations in any country which imposes little or no taxes on such operations or provides any tax incentive for capital investments in such operations.

[AI summary unavailable — showing source text] Amends the Internal Revenue Code to include in foreign base company income any foreign base company manufacturing related income for the taxable year. Defines "foreign base manufacturing related income" as any income derived from the sale of property by a controlled foreign corporation where the property sold was manufactured in any country other than the United States in either a tax holiday plant or in a runaway plant. Defines "tax holiday plant" and "runaway plant".…