Manufacturers Encouraged by House Taxwriters’ Plan to Reform International Tax System
Territorial System Would Promote U.S. Competitiveness and Jobs
National Association of Manufacturers (NAM) Vice President for Tax and Domestic Economic Policy Dorothy Coleman issued the following statement in response to House Ways and Means Committee Chairman Dave Camp’s (R-MI) release of a draft proposal to set up a territorial tax system:
“The NAM has long called for tax reform that moves America to a territorial tax system like those used by other industrialized countries. Reducing taxation on the foreign income of U.S.-based businesses is a building block of the NAM blueprint for creating a dynamic environment that supports job creation and economic growth here in America. Currently the U.S. is the only major industrial nation that taxes a company’s global earnings, resulting in a significant disadvantage for manufacturers.
We applaud Chairman Camp for taking steps toward this important reform in a thoughtful and deliberative manner. We look forward to reviewing the proposal with our members and providing input to the committee on a proposal that will allow worldwide American companies to be more competitive. If U.S. companies cannot compete abroad, where 95 percent of the world’s consumers are located, the U.S. economy will suffer from the loss of both foreign markets and domestic jobs that support foreign operations.”
The NAM has released a roadmap of policies to enhance the competitiveness of manufacturing in the United States. A Manufacturing Renaissance: Four Goals for Economic Growth outlines policies such as a territorial tax system that must be adopted to enhance access to new markets and expand existing ones. Manufacturers strongly encourage all members of Congress and President Obama to adopt the policies laid out in A Manufacturing Renaissance. To read A Manufacturing Renaissance, please click here.