Treasury's Proposed Regs Would Harm Economy, Businesses Say
Treasury's Proposed Regs Would Harm Economy, Businesses Say
- Institutional AuthorsAbercrombie & Fitch Co.Aggregate Industries Management Inc.Akzo Nobel Coatings Inc.American Petroleum Institute-OhioAnheuser-BuschARC Abrasives Inc.BBA AviationBig Lots Inc.BP AmericaCardinal Health Inc.Caterpillar Inc.ContiTechCooper Tire & Rubber Co.DDR Corp.Forest City Realty Trust Inc.HMB Inc.HuhtamakiHyster-Yale Materials Handling Inc.InterContinental Hotels Group PLCInvacare Corp.L Brands Inc.Lafarge North America, Inc., Holcim (US) Inc.Manufacturing Policy AllianceMcGregor MetalworkingMillerCoorsNavistar International Corp.NestléO-I Inc.Ohio Chamber of CommerceOhio Manufacturers' AssociationOwens-CorningPatheon Pharmaceuticals Inc.Philips North AmericaPhillips Edison & Co. Ltd.RandstadSheely's Furniture & Appliance Co. Inc.SiemensSolvay America Inc.STERIS Corp.Tate & LyleTE ConnectivityThe Kraft Heinz Co.The Procter & Gamble Co.The Timken Co.TransamericaUnited Technologies Corp.Whirlpool Corp.
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2016-19532
- Tax Analysts Electronic Citation2016 TNT 188-22
September 27, 2016
The Honorable Jacob Lew
United States Treasury Secretary
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, DC 20220
Dear Secretary Lew:
As employers with headquarters, significant investments or business interests in Ohio, we write to inform you that the Treasury Department's proposed regulations under section 385 of the Internal Revenue Code are already having a negative impact on Ohio's business community. We believe the regulations, as proposed, go far beyond Treasury's stated intent to curtail abusive transactions. If the regulations were to become final in their current form, they would significantly impede the ability of our businesses to invest and create jobs in Ohio.
The proposed regulations will complicate, and in some cases eliminate, our companies' ability to self-finance our job growth and could obstruct access to capital. The broad language of the regulations creates uncertainty resulting in serious hesitation to make long-term commitments in an already challenging business environment. The regulations would inflict significant costs on our businesses, with no direct or indirect benefit to consumers, by mandating new and extensive tracking, documentation and compliance requirements. Finally, the subjective nature of the regulations and the new bifurcation authority given to the IRS would all-but ensure compliance issues and increased controversy.
In its mission statement, Treasury sets forth to, "Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable economic growth and stability at home and abroad, strengthen national security by combating threats and protecting the integrity of the financial system, and manage the U.S. Government's finances and resources effectively." The proposed regulations fall short of achieving these goals. They would inhibit economic growth and stability through the excessive burdens imposed on Ohio businesses. They would hurt the integrity of our financial system with new overly broad rules. They would not effectively manage resources by creating more controversy. Finally, they would reduce business growth and thus tax revenues.
In previous letters, formal comments, and other communications many of us individually shared our views on how Treasury should move forward. These include substantial modification of the current proposal to address the numerous issues identified in the public comment process, a re-proposal of the regulations in order to more carefully target abusive transactions, and complete withdrawal. Collectively, as members of the broader Ohio business community, we implore you to take into full consideration the unintended collateral consequences the regulations would have on local economies in Ohio and across the U.S. We urge you to proceed in a manner which gives Ohio businesses and their direct and indirect employees the best chance to prosper and compete.
Abercrombie & Fitch Co.
New Albany
Aggregate Industries Management,
Inc.
Akzo Nobel Coatings, Inc.
Columbus
American Petroleum Institute-Ohio
Anheuser-Busch
Columbus
ARC Abrasives, Inc.
Troy
BBA Aviation
Big Lots, Inc.
Columbus
BP America
Toledo
Cardinal Health, Inc.
Columbus
Caterpillar Inc.
Clayton
ContiTech -- a Continental company
Fairlawn
Cooper Tire & Rubber Company
Findlay
DDR Corp.
Beachwood
Forest City Realty Trust, Inc.
Cleveland
HMB, Inc.
Westerville
Huhtamaki
Batavia
Hyster-Yale Materials
Handling, Inc.
Mayfield Heights
InterContinental Hotels Group PLC
Cleveland
Invacare Corporation
Elyria
L Brands, Inc.
Columbus
Lafarge North America, Inc.,
Holcim (US), Inc.
Manufacturing Policy Alliance (OH)
McGregor Metalworking
Springfield
MillerCoors
Trenton
Navistar International Corporation
Springfield
Nestlé
O-I, Inc.
Perrysburg
Ohio Chamber of Commerce
Ohio Manufacturers' Association
Owens-Corning
Toledo
Patheon Pharmaceuticals, Inc.
Cincinnati
Philips North America
Highland Heights
Phillips Edison & Company, Ltd.
Cincinnati
Randstad
Sheely's Furniture &
Appliance Co. Inc.
North Lima
Siemens
Solvay America, Inc.
Marietta
STERIS Corporation
Mentor
Tate & Lyle
Dayton
TE Connectivity
Mansfield
The Kraft Heinz Company
Massillon
The Procter & Gamble Company
Cincinnati
The Timken Company
North Canton
Transamerica
United Technologies Corporation
Whirlpool Corporation
Clyde
- Institutional AuthorsAbercrombie & Fitch Co.Aggregate Industries Management Inc.Akzo Nobel Coatings Inc.American Petroleum Institute-OhioAnheuser-BuschARC Abrasives Inc.BBA AviationBig Lots Inc.BP AmericaCardinal Health Inc.Caterpillar Inc.ContiTechCooper Tire & Rubber Co.DDR Corp.Forest City Realty Trust Inc.HMB Inc.HuhtamakiHyster-Yale Materials Handling Inc.InterContinental Hotels Group PLCInvacare Corp.L Brands Inc.Lafarge North America, Inc., Holcim (US) Inc.Manufacturing Policy AllianceMcGregor MetalworkingMillerCoorsNavistar International Corp.NestléO-I Inc.Ohio Chamber of CommerceOhio Manufacturers' AssociationOwens-CorningPatheon Pharmaceuticals Inc.Philips North AmericaPhillips Edison & Co. Ltd.RandstadSheely's Furniture & Appliance Co. Inc.SiemensSolvay America Inc.STERIS Corp.Tate & LyleTE ConnectivityThe Kraft Heinz Co.The Procter & Gamble Co.The Timken Co.TransamericaUnited Technologies Corp.Whirlpool Corp.
- Cross-Reference
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2016-19532
- Tax Analysts Electronic Citation2016 TNT 188-22