I believe this section of the bill needs to be edited so that big corporations cannot simply gain in the competition “SEC. 1400V–2. ECONOMIC FREEDOM ZONE CORPORATE FLAT TAX.
“(a) In General.—In the case of any corporation located in an Economic Freedom Zone for the taxable year, in lieu of the tax imposed by section 11, there shall be imposed a tax equal to 5 percent of the taxable income of such corporation. For purposes of this title, the tax imposed by the preceding sentence shall be treated as a tax imposed by section 11.
“(b) Limitation.—Subsection (a) shall not apply to any corporation for any taxable year if the adjusted gross income of such corporation for such taxable year exceeds $500,000,000.
“(c) Located.—For purposes of this section, a corporation shall be considered to be located in an Economic Freedom Zone if—
“(1) not less than 10 percent of the total gross income of such corporation is derived from the active conduct of a trade or business within an Economic Freedom Zone, or
“(2) at least 25 percent of the employees of such corporation are residents of an Economic Freedom Zone.