Killing U.S. Jobs Through Tax Increases

By May 26, 2010General, Taxation, Trade

The National Association of Manufacturers is a member of the PACE Coalition, which stands for Promote America’s Competitive Edge. Other groups in the coalition are the Business Roundtable, Information Technology Industry Council, National Foreign Trade Council, and U.S. Chamber of Commerce.

In a May 24 letter, the PACE Coalition expressed sharp opposition to the tax increases included in H.R. 4213, the tax extenders bill (plus tax increases, unemployment and COBRA extension, Medicare reimbursement rejiggering and state budget bailout). Excerpt from the letter:

The members of PACE, including the undersigned trade associations, advocate that the United States maintain a level playing field for taxation of international operations. The proposed $14 billion in proposed tax increases included in H.R. 4213 do entirely the opposite and unilaterally disadvantage U.S. companies. American global companies already struggle under a worldwide tax system and one of the highest corporate tax rates in the world. The proposed changes in the international tax rules will make a bad situation worse, making it even more difficult for American worldwide companies to compete.

Since PACE was formed in early 2009 Coalition members have urged policy makers to consider changes to our international tax laws in the broader context of tax reform that makes us more competitive and not use international tax increases as “pay fors” outside of that context. Moreover, “picking off” some international tax law changes in advance of tax reform would make pro-growth, pro-competitiveness reform more difficult, if not impossible.

The letter notes prominently that the groups support many of the pro-growth tax relief provisions in the bill.

House debate is expected to start this afternoon after the parties return from the weekly caucus meetings. More …

 

Leave a Reply