Move to 25 Percent Corporate Rate & Territorial System Gaining More Support
Following the release of an international tax reform discussion draft by Ways and Means Committee Chairman Dave Camp, the effort to make American companies more competitive in the global economy and help create U.S. jobs is picking up steam. The Ways and Means draft would set the corporate rate at 25 percent, bringing it in line with the average of the OECD, and eliminate the double taxation U.S.-based companies face when bringing profits earned overseas back home. Below is a sampling of recent comments on the plan from leading employers and tax experts.
3M: “3M has long supported the need for comprehensive corporate tax reform principally to improve the global competitiveness of American businesses and workers. We believe that a significant reduction in the corporate tax rate and the adoption of a territorial system are key components to this much needed reform.”
Walter Galvin, Vice Chairman of Emerson : “America’s high corporate tax rate and worldwide system of taxation — a toxic combination — discourage U.S. companies from sending their foreign-source income home, make U.S. companies vulnerable to foreign acquisition and give an advantage to our international competitors. The chairman’s proposal would solve these problems.”
U.S. Chamber of Commerce : “The Chamber has long supported a shift to a territorial tax system and a lower corporate tax rate as part of comprehensive tax reform. We applaud Camp’s willingness to introduce a plan that contains those provisions and appreciate the opportunity he has given the business community to provide feedback. While we continue to assess the details and get feedback from our members, we believe Chairman Camp’s proposal is a bright spot, showing that his Committee is ready to rise to the challenge of tax reform.”
Gary Hufbauer, senior fellow at the Peterson Institute for International Economics : The proposal is, “a step in the right direction” and that a territorial system, “is absolutely the right way to go.” (Alison Bennett, BNA,”Camp Proposal for Territorial System ‘Step In the Right Direction,’ Institute Fellow Says,” November 3, 2011)
Hank Gutman, Principal at KPMG and former chief of staff for the Joint Committee on Taxation : Called the plan,”a bold, comprehensive discussion draft” that has,”drastically changed the playing field.” (Alison Bennett, BNA,”Camp Views Territorial Proposal as Tied To Broader Reform Plan, Senior Aide Says,” November 2, 2011)
To see additional comments on the Ways and Means discussion draft, click here.