House Takes Another Swipe At U.S. Jobs

By September 30, 2010Briefly Legal, Taxation

The House did it again yesterday—used an anti-competitiveness tax hike on some businesses in the United States to “pay for” an unrelated, albeit worthy, policy initiative.

The James Zadroga 9/11 Health and Compensation Act of 2010 (H.R. 847) — approved by a vote of 268 to 160—would extend and improve protections and services to individuals whose health was directly affected by the September 2001 attacks in New York.

That’s the good idea. The bad news is that the bill would impose some $7 billion in taxes on foreign-owned companies doing business in the United States by repealing some long-standing treaty benefits. The limit on treaty benefits will violate many of the bilateral tax treaties currently in effect between the United States and foreign countries and could lead to retaliatory actions by other countries or withdrawal by our treaty partners from existing treaties. Tax increases like these would make the United States less attractive for foreign companies to invest and create jobs and that’s a big concern for the 20 percent of manufacturing workers in the United States who work for foreign-owned companies.

Dorothy Coleman

Dorothy Coleman

Dorothy Coleman is vice president of tax and domestic economic policy at the National Association of Manufacturers (NAM). Ms. Coleman is responsible for providing NAM members with important information related to tax issues and representing the NAM’s position to Congress, the Administration and the media. An NAM spokesperson for tax policy issues, she coordinates membership coalitions; prepares testimony, reports and analyses; and responds to media inquiries. Before taking over as vice president of the tax policy department, she served as director of tax policy from April 1998 to April 2000.
Dorothy Coleman

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