What benefits do you see for the U.S. economy in tax-1. Sparing credits? Should it be expanded or reduced? Why or why not? 2. A U.S. manufacturer wants to conduct business through a foreign subsidiary organized in a low tax jurisdiction. How might it do so without being currently taxed on the subsidiary’s foreign earnings? What benefits do you see for the U.S. economy in tax-1. Sparing credits? Should it be expanded orreduced? Why or why not?SolutionThe tax 1 sparing credits are beneficial for the U.S. Economy as…