Washington – The PACE Coalition today issued the following statement in response to introduction of the Overhauling International Taxation framework by Senate Finance Committee Chair Ron Wyden, Senator Sherrod Brown, and Senator Mark Warner:
“The latest proposal to overhaul international taxation would jeopardize job growth and make the United States less competitive. By increasing taxes on the income earned in foreign markets by globally engaged American companies, this proposal would help foreign companies and hurt American workers.
“The current tax law’s Global Intangible Low Tax Income (GILTI) provision provides guardrails to protect the U.S. tax base against tax-motivated incentives to shift operations—and thus profits and jobs—away from the U.S. to lower-tax jurisdictions. Increasing taxes on globally engaged American companies risks damaging their ability to compete globally with competitors like China who are prioritizing economic growth.
“As the United States works to recover from the COVID-19 pandemic, it is essential that any changes to our tax system prioritize job growth, investment in research and development and global competition. This proposal puts the 71 million American jobs that depend on globally engaged American companies at risk. The PACE Coalition is dedicated to ensuring proposals like this will not jeopardize our nation’s workers and companies.”