Washington – The PACE— Promote America’s Competitive Economy—Coalition today issued the following statement in advance of the Ways and Means markup of Reconciliation legislation:
“PACE opposes proposed international tax increases that further tilt the playing field against American companies, jeopardize American job growth and make the United States less competitive with China and others.
“Globally engaged American companies open up the world for American workers to sell the goods and services they produce. These American companies directly employed 26.6 million American workers in 2018, and support tens of millions of additional American jobs through their supply chains. Over half of all goods and services that are exported from the United States are by globally engaged American companies or are purchased by them from other American companies. American companies compete head-to-head against foreign-headquartered companies around the world, with 90% of the goods and services produced by their foreign affiliates sold to foreign customers.
“The current tax law’s Global Intangible Low Tax Income (GILTI) provision already results in American companies paying additional tax on their foreign earnings not faced by their foreign competitors. Any further increases of taxes paid only by American companies will put them at a greater disadvantage globally and put American jobs at risk.
“Bottom line, the United States is the only country with a global minimum tax. Before Congress considers making the current U.S. system even more burdensome for American companies, it needs to ensure other countries enact their own foreign minimum taxes on their own companies. Doing otherwise simply disadvantages American companies and American workers.
“Competitive tax policies benefit all Americans—increasing jobs and household incomes. PACE urges Congress to reverse course on plans to impose these harmful tax changes.”