Washington – The PACE Coalition today issued the following statement in response to the introduction of the Overhauling International Taxation discussion draft by Senate Finance Committee Chair Ron Wyden, Senator Sherrod Brown and Senator Mark Warner:
“This discussion draft would increase taxes on American companies and not their competitors, which would tilt the playing field against our companies, jeopardize American job growth and make the United States less competitive with China and others.
“The current tax law’s Global Intangible Low Tax Income (GILTI) provision already punishes companies that shift operations from the United States to lower-tax jurisdictions. In fact, recent analyses show that GILTI has actually caused U.S. companies to bring more income and operations back to America. Any further increases of taxes paid only by American companies will put them at a greater disadvantage globally—including against Chinese state-owned enterprises. Bottom line, the United States is the only developed country with a global minimum tax; Congress needs to wait for other countries to enact foreign minimum taxes before making the current U.S. system even more burdensome for U.S. companies and disadvantaging our businesses at home and in a global economy.
“Competitive tax policies benefit all Americans—increasing jobs and household incomes. PACE urges Congress and the Biden Administration to reverse course on plans to impose these harmful tax changes.”