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Territorial Tax System: Increasing U.S. Competitiveness and Economic Growth
Friday, October 28, 2011
Chairman Dave Camp unveiled an international tax reform discussion draft Wednesday as part of the Committee’s broader effort on comprehensive tax reform that would lower top tax rates for both individuals and employers to 25 percent. The plan would also transition the United States from a worldwide system of taxation to a territorial system. Many business groups, tax reform organizations and employers voiced their strong support for the plan as a vital part of much-needed tax reform, noting that it will increase U.S. competitiveness and encourage economic growth, in turn creating U.S. jobs.
Business Roundtable: “Corporate tax reform will directly benefit the American workforce. By increasing the worldwide competitiveness of American companies and American workers, and attracting investment to the U.S., tax reform can be a tremendous jobs bill…We look forward to working with Chairman Camp and the Congress to enact corporate tax reform. The sooner comprehensive corporate tax reform can be enacted, the better it will be for the economy.”
Information Technology Industry Council: “At a time of heated political rhetoric and risk, Chairman Camp has put forward a bold and practical plan for international tax reform that highlights the fact that our current system is broken and too often working against us. We are in critical need of a system reboot on the tax issue. Moving to a territorial system, reducing the corporate rate and encouraging the repatriation of foreign-earned profits will serve to strengthen America's competitiveness and help get our economy back on track.”
National Retail Federation: "This is a major step forward in drafting a simpler and fairer tax system that would ultimately help create jobs for American workers. Retailers would see lower tax bills under this proposal and would pass much of that savings along to our customers. That would result in higher sales and more demand for merchandise that would boost jobs not just in stores but throughout the supply chain and many other sectors of the economy."
National Foreign Trade Council: “We are very pleased to see that Chairman Camp understands the difficulty that companies face in global competition. The U.S. tax system has been the outlier in the world economy for far too long. Moving to a territorial tax system and reducing the corporate tax rate will allow companies to grow in the United States, and will also attract more in-bound investment, leading to more job growth.”
Coca-Cola Company: "The Coca-Cola Company supports restructuring our corporate income tax system to create a 21st century tax system that is competitive with the tax systems of other developed countries and that encourages new investment in the United States. We commend Chairman Camp and his committee for establishing a transparent legislative process that encourages a meaningful dialogue on comprehensive tax reform, a model similar to that of other nations that have enacted fundamental tax reform."