Menu
Tax Notes logo
HOMETax Notes ResearchFederalLegislative Documentscongressional tax correspondence

Business Group Says Obama's International Tax Proposals Would Harm U.S. Competitiveness

MAR. 9, 2010

Business Group Says Obama's International Tax Proposals Would Harm U.S. Competitiveness

DATED MAR. 9, 2010
DOCUMENT ATTRIBUTES

 

March 9, 2010

 

 

280+ Organizations Cite Need for Competitive Tax Policies if

 

American Employers are to Grow and Create Quality U.S. Jobs

 

 

Washington, D.C. -- The PACE Coalition today cited job creation as the number one reason why Congress should reject the Administration's new international tax proposals that would amount to a $122 billion tax increase on worldwide American companies over the next decade.

In a letter delivered today to all Members of Congress, PACE Coalition members stated the following:

 

. . . We support the President's call to double U.S. exports over the next five years as a way to create two million new American jobs. However, the Administration's budget proposal would impose punitive taxes on the very employers that are in the best position to help accomplish this worthy goal.

. . . The President has acknowledged that "the true engine of job creation in this country will always be America's businesses. . ." Again, he is right. But with 95 percent of the world's consumers living outside of our borders, our businesses must look abroad if we are to expand sales, increase exports, grow at home, and create quality new American jobs.

. . . To keep good jobs and decent wages here in America, and spur the creation of quality new U.S. jobs, Congress must ensure that the U.S. tax code keeps worldwide American companies competitive.

 

Because most other major economies do not tax the foreign earnings of their home-based companies, the PACE Coalition has advocated for U.S. tax policies that will keep worldwide American companies on a relatively level playing field with their foreign competitors. The current proposals, however, would move in the opposite direction, putting U.S. employers at a competitive disadvantage.

287 companies and business associations, collectively employing tens of millions of American workers, and representing a wide range of industries that drive U.S. growth by selling goods and services abroad joined in signing the letter.

To view a copy of the letter, visit www.pace4jobs.org.

 

* * *

 

 

March 9, 2010

 

 

Dear Member of Congress:

The undersigned companies and trade associations, collectively employing tens of millions of American workers, write to express our concerns with the international tax provisions as proposed in the Obama Administration's budget for FY 2011.

Once again, the Administration has proposed to fundamentally rewrite some of the basic rules of international taxation -- rules that have been in existence for nearly 100 years -- in a manner that would severely disadvantage American companies and make U.S. workers less secure.

We support the President's call to double U.S. exports over the next five years as a way to create two million new American jobs. However, the Administration's budget proposal would impose punitive taxes on the very employers that are in the best position to help accomplish this worthy goal.

The President's budget would amount to a $122 billion tax increase on worldwide American companies over the next ten years. While some of the particulars have changed from last year's tax proposal, the bottom line impact on worldwide American companies remains the same: The proposals would significantly reduce the ability of worldwide American companies to compete in markets both here at home and abroad.

The President has acknowledged that "the true engine of job creation in this country will always be America's businesses . . ." Again, he is right. But with 95 percent of the world's consumers living outside of our borders, our businesses must look abroad if we are to expand sales, increase exports, grow at home, and create quality new American jobs.

  • Worldwide American companies are responsible for nearly half of all U.S. exports -- $558.6 billion in 2007.

  • Small and medium sized U.S. businesses are suppliers to worldwide American companies and are the direct beneficiaries of increased international growth.

 

American companies with worldwide operations directly employ 22 million American workers and support an additional 41 million U.S. jobs through their supply chain and through the purchases of goods and services by their employees. A steep corporate tax hike on worldwide American companies will hinder our ability to protect and create American jobs and will slow our nation's economic recovery.

To keep good jobs and decent wages here in America, and spur the creation of quality new U.S. jobs, Congress must ensure that the U.S. tax code keeps worldwide American companies competitive.

Sincerely,

 

 

48HourPrint.com

 

A. O. Smith Corporation

 

A. Schulman

 

Abbott Laboratories

 

Acuity Brands, Inc.

 

Adobe Systems Incorporated

 

Advanced Micro Devices, Inc.

 

Aerospace Industries Association

 

Agilent Technologies, Inc.

 

Air Products and Chemicals, Inc.

 

Alar Engineering Corporation

 

Alcoa

 

ALOM

 

Altera Corporation

 

American Apparel & Footwear

 

Association

 

American Chemistry Council

 

American Composites Manufacturers

 

Association

 

American Express Company

 

Amphenol Corporation

 

AMT -- The Association for

 

Manufacturing Technology

 

Amway

 

Apple Inc.

 

Applied Materials, Inc.

 

Aruba Networks

 

Associated Industries of Florida

 

Associated Industries of

 

Massachusetts

 

Associated Industries of Missouri

 

Association of Equipment

 

Manufacturers

 

Atheros Communications, Inc.

 

Avery Dennison

 

Aviat Networks

 

Baker Hughes Incorporated

 

Ball Corporation

 

Barker Manufacturing Co.

 

Barrick Gold Corporation of

 

North America

 

Baxter International

 

Bayer Corporation

 

Bell Microproducts

 

Bison Gear & Engineering Corp.

 

BMC Software, Inc.

 

Boston Scientific Corporation

 

Brady Corporation

 

Bridgelux

 

Bridwell Oil Company

 

Bristol-Myers Squibb Company

 

Brocade Communications Systems,

 

Inc.

 

Brown-Forman Corporation

 

Brunswick Corporation

 

Business Council of New York State

 

Business Roundtable

 

Business Software Alliance

 

CA, Inc.

 

California Manufacturers &

 

Technology Association

 

Campbell Soup Co.

 

Cargill

 

Case New Holland

 

Catalyst Biosciences

 

Caterpillar Inc.

 

Celanese Corporation

 

Celgene Corporation

 

CFRA, LLC

 

Change Strategists, Inc.

 

Chevron

 

Chrysalis Software, Inc.

 

Cisco Systems, Inc.

 

Citi

 

Clayton Industries

 

Club Kit Inc.

 

Cognizant Technology Solutions

 

Commercial Vehicle Group, Inc.

 

Compass Minerals International,

 

Inc.

 

Con-way Inc.

 

ConocoPhillips

 

Convergys Corporation

 

Cooper Tire & Rubber Company

 

Corning

 

Cummins Inc.

 

Custom Packaging, Inc.

 

Deere & Company

 

Dell Inc.

 

Devon Energy Corporation

 

Diamond Offshore Drilling Inc

 

Discovery Communications, LLC

 

Dolby Laboratories, Inc.

 

Draper, Inc

 

Drummond Company, Inc.

 

DuPont

 

Eaton Corporation

 

eBay Inc.

 

Echelon Corporation

 

Ecolab Inc.

 

EFI

 

Electronic Arts, Inc.

 

Eli Lilly and Company

 

EMC Corporation

 

Emergency Committee for American

 

Trade (ECAT)

 

Emerson

 

Empire Broadcasting Corp

 

European-American Business Council

 

Exponent, Inc.

 

Exxon Mobil Corporation

 

Fairchild Semiconductor Inc.

 

Financial Executives International

 

Financial Services Roundtable

 

Fluor

 

FMC Technologies, Inc.

 

Ford Motor Company

 

Fortune Brands

 

Garland Actuarial LLC

 

General Electric

 

Genworth Financial

 

Girard Industries

 

Goodrich Corporation

 

Google Inc.

 

GTC Technology US, LLC

 

Guardian Industries Corp.

 

Harley-Davidson, Inc.

 

Harsco Corporation

 

Hess Corporation

 

Hewlett-Packard Company

 

Honeywell

 

Hormel Foods Corporation

 

Hutchinson Technology Incorporated

 

INDA, Association of the Nonwoven

 

Fabrics Industry

 

Indiana Manufacturers Association

 

Induction Heat Treating Corp.

 

Informatica Corporation

 

Information Technology Industry

 

Council

 

Intel Corporation

 

International Business Machines

 

Corporation

 

International Paper Co.

 

Intevac Inc

 

Jabil Circuit, Inc.

 

JELD-WEN, inc.

 

JLG Industries

 

Johnson & Johnson

 

Jones Lang LaSalle Incorporated

 

Joy Global Inc

 

JPMorgan Chase & Co.

 

Kimberly-Clark Corporation

 

KLA-Tencor Corporation

 

Kodak

 

Kohler Co.

 

Koller Enterprises, Inc.

 

Kovio

 

Kraft Foods Inc.

 

Leggett & Platt, Incorporated

 

Lexmark International, Inc.

 

Liberty Mutual Group

 

Life Technologies Corporation

 

Linden Research, Inc. -- Developer

 

of Second Life

 

Loews Corporation

 

Lord Corporation

 

LSI Corporation

 

Luxim Corporation

 

Manpower

 

Marlin Steel Wire Products LLC

 

Masco Corporation

 

MasterCard Worldwide

 

McAfee, Inc.

 

McCormick & Company, Inc

 

McKesson Corporation

 

McNichols Company

 

MeadWestvaco Corporation

 

Medical Device Manufacturers

 

Association

 

Medtronic, Inc.

 

Merck & Co., Inc.

 

Michigan Manufacturers Association

 

Microsoft Corporation

 

MJKL Enteprises

 

Modern Technology Solutions, Inc.

 

Modine Manufacturing Co.

 

Moridge Mfg., Inc.

 

Motor & Equipment Manufacturers

 

Association

 

Motorola, Inc.

 

MTD Products Inc

 

NACCO Industries, Inc.

 

Nanosolar

 

National Association of

 

Manufacturers

 

National Electrical Manufacturers

 

Association (NEMA)

 

National Foreign Trade Council

 

National Instruments Corporation

 

National Petrochemical and Refiners

 

Association (NPRA)

 

National Shooting Sports Foundation

 

Navistar International Corporation

 

NetApp, Inc.

 

NETGEAR, Inc.

 

Network Environmental Systems, Inc.

 

New Jersey Business & Industry

 

Association

 

New York Life Insurance Company

 

Novelis Corp

 

Novellus Systems, Inc.

 

Novo Nordisk Inc

 

NXP Semiconductors

 

Oracle

 

Owens-Illinois, Inc.

 

P&R Enterprises, Inc.

 

Paladin Brands

 

Palmer College of Chiropractic

 

Panduit Corp.

 

Paragon Global Resources, Inc.

 

Parker Hannifin Corporation

 

Peabody Energy

 

Pentair, Inc.

 

PepsiCo, Inc.

 

Pfizer Inc

 

Philip Morris International Inc.

 

Phoenix Closures Inc.

 

Plantronics, Inc.

 

Plexus Corp.

 

PPG Industries

 

Praxair, Inc.

 

Precision Stamping Co., Inc.

 

Procter & Gamble

 

Qualcomm

 

Quality Chaser Company

 

Regal Beloit Corporation

 

Retail Industry Leaders Association

 

Rockwell Automation

 

Rockwell Collins

 

Rovi Corporation

 

Royal Concrete Concepts, Inc

 

RPM International Inc.

 

RR Donnelley

 

Ryder System, Inc.

 

S. C. Johnson & Son, Inc.

 

sanofi-aventis U.S. Inc.

 

Sara Lee Corporation

 

Semiconductor Industry Association

 

Sensient Technologies Corporation

 

Sigma-Aldrich Corporation

 

Signal Metal Industries, Inc.

 

Silicon Valley Leadership Group

 

Silicon Valley Tax Directors Group

 

Snap-on Incorporated

 

Society of Chemical Manufacturers

 

and Affiliates (SOCMA)

 

Software & Information Industry

 

Association

 

Software Finance and Tax Executives

 

Council

 

Solers, Inc.

 

South Carolina Chamber of Commerce

 

Southern Champion Tray LP

 

Spectra Energy Corp

 

Splunk, Inc.

 

SPX Corporation

 

SSA Marine

 

Stion

 

SVB Financial Group

 

Sybase, Inc.

 

Symantec Corporation

 

Synopsys, Inc.

 

TechAmerica

 

TechNet

 

Technitrol, Inc.

 

Ten-Tec, Inc.

 

Teradata Corporation

 

Terex Corporation

 

Ternion Bio Industries, Inc.

 

Tessera, Inc.

 

Texas Instruments

 

The Aluminum Association

 

The Clorox Company

 

The Coca-Cola Company

 

The Dow Chemical Company

 

The Lee Company

 

The Lincoln Electric Company

 

The Manitowoc Company, Inc.

 

The McGraw-Hill Companies

 

The Stanley Works

 

The Timken Company

 

TNS, Inc.

 

Tupperware Brands Corporation

 

Tyler Construction group

 

U.S. Chamber of Commerce

 

Unilever United States, Inc.

 

United States Council for

 

International Business

 

United Technologies Corporation

 

Uniweld Products Inc.

 

Varian Medical Systems, Inc.

 

Vermeer Corporation

 

W. R. Grace & Co.

 

WattStopper

 

Webcor Builders

 

Wenger Construction Co., Inc.

 

WESCO Distribution, Inc.

 

Xerox Corporation

 

Xilinx

 

Yum! Brands, Inc.

 

Zimmer, Inc
DOCUMENT ATTRIBUTES
Copy RID