Good morning and thank you for joining us today for another in the series of hearings on comprehensive tax reform.

Under the leadership of Chairman Camp the Ways & Means Committee has been working through a full assessment of the tax code. From this assessment it’s clear the tax code stifles job creation at a time when unemployment rates in Ohio and across the country remain well above their historic averages.  The goal of tax reform is to reverse this trend.  The time is long overdue to write a tax code that better incentivizes job creation in America.

Today’s hearing highlights an important contributor to our economy—foreign companies who directly invest in the United States.  Their investment is critical to growing the economy and creating jobs.

Over the last ten years, affiliates of foreign companies have employed between five and six million workers in the United States. This month the Administration released two reports affirming the importance of foreign direct investment.  I agree and I look forward to working with the Administration to eliminate the regulatory barriers standing in the way of greater foreign investment.

 Chairman Camp requested that the Select Revenue Measures Subcommittee further examine inbound issues raised in prior tax reform hearings. We have heard concerns from U.S. businesses about the tax code.  Many U.S. affiliates of foreign-based companies view themselves as American businesses rather than foreign businesses.  Today’s hearing will provide them the opportunity to share their concerns.

Today’s hearing will also examine tax rules specific to foreign investment including earnings stripping and transfer pricing.  The effectiveness of these rules in preventing foreign companies from using the tax code to create a competitive advantage over domestic companies is the subject of great debate.

Finally, I look forward to examining the impacts of the Foreign Investment in Real Property Tax Act. With talk of a double-dip recession, increasing the availability of capital from foreign investors is a common-sense step to strengthen the U.S. commercial real estate market.  Last year, Representative Crowley introduced legislation with me to address this issue.  I understand similar legislation is in the works this year and I applaud those efforts.