Manufacturers: Senate Tax Writers’ International Tax Proposal Falls Short

Proposal Fails to Promote a Globally Competitive International Tax System

National Association of Manufacturers (NAM) Vice President for Tax and Domestic Economic Policy Dorothy Coleman issued a statement in response to Senate Finance Committee Chairman Max Baucus’ (D-MT) release today of a staff discussion draft international tax reform proposal.

“Manufacturers are committed to moving tax reform forward and we appreciate the opportunity offered by Sen. Baucus to comment on his plan. We look forward to working with the committee to craft a solution that will allow worldwide American companies to be more competitive.

Unfortunately, the discussion draft released today by Sen. Baucus is not what manufacturers had hoped to hear from the committee. Tax reform needs to be about making the United States more competitive and spurring economic growth. This draft falls short of those goals because it would raise the tax burden on some U.S. worldwide manufacturers, making them even less competitive and threatening U.S. jobs.

The NAM supports the adoption of a new international tax system—similar to systems in most industrial countries—that is structured to enhance U.S. competitiveness, not raise revenue. Overseas operations benefit U.S. jobs and the U.S. economy. The ability to compete overseas is particularly important for the U.S. manufacturing sector—almost 50 percent of U.S. global companies are manufacturers. Tax reform must protect and enhance these critical drivers of our economy.”

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