Tax breaks was one of the great advantages of working abroad, especially in a low-tax part of Asia like Hong Kong or Singapore. But that deal has just soured a little, reports the New York Times.

The last tax bill that went through Congress and which the President signed, took away a lot of the tax benefits of working abroad. The housing allowance, for example, which is crucial in very high-rent districts of Asia, has been reduced as has the allowance for trips back home and school fees.

The idea of those allowances was to put Americans in the same economic position they'd have if they'd stayed home. Housing was subsidized and other expenses were paid. Senator Charles Grassley, who chairs the Finance Committee has long wanted to cut the allowances because he says they're too generous. Now he has.

It will hurt some employees and the cut is retroactive to the beginning of the year, so it will require a little catch-up. But the real loser will be companies that post employees abroad or want to - like our own Sands, Wynn and other companies that aspire to become major casino operators in Asia.

They will have to pony up the extra money to pay for the higher salaries and additional taxes that will now be counted as taxable income. The companies will have to sweeten the pot to make these destinations sufficiently attractive to get key managers to go.

This is really a parochial and near-sighted policy in a global economy. If we want to maximize our influence, we don't want to be making overseas postings less attractive and encourage companies to hire similarly qualified Engliish-speakers from other countries whose governments impose no taxes on their citizens abroad. In fact, countries like Canada and Britain with significantly higher income taxes than the U.S. have a built-in incentive for their folks to work overseas.