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Washington – The PACE Coalition today issued the following statement after the Organisation for Economic Co-operation and Development (OECD) announcement on a global tax framework:

“Today’s OECD announcement on progress for a global tax framework leaves many details unresolved and questions unanswered. It also raises significant concerns on why Congress would increase the GILTI rate above the OECD’s proposed 15%, and do so years before other countries can implement this agreement. Congress should not make changes to the tax code unless and until other countries enact foreign minimum taxes on their companies. Doing so would further disadvantage U.S. companies and American workers.”

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.”

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.”

Washington - The PACE Coalition today released the following statement on the announced OECD high-level agreement on a 15 percent global minimum tax:

“U.S. companies have been subject to a minimum tax on their overseas earnings since the U.S. undertook tax reform in 2017, and the OECD announcement holds the potential for foreign competitors to be held to a similar standard. However, until there is widespread adoption of such foreign minimum taxes, American businesses serving the global marketplace will continue to be at a competitive disadvantage.

“Congress should wait for other countries to enact foreign minimum taxes on their companies before making changes to the tax code that would further disadvantage U.S. companies and American workers. America’s globally engaged companies will continue to face steep challenges in competing against foreign competitors who may not be subjected to a global minimum tax for years—if ever.

“We urge U.S. leaders to maintain a competitive U.S. tax code, which will foster a stronger economic recovery from the pandemic, job and wage growth for American workers and enduring economic prosperity for American families nationwide."

The PACE Coalition is dedicated to a robust economic recovery and long-term prosperity for all Americans. Learn more at http://KeepPACE.us and @KeepPaceUS. 

Washington – The PACE Coalition today issued the following statement after the Biden Administration unveiled additional details on its proposal to increase the Global Intangible Low-Taxed Income (GILTI ) rate:

“The Administration’s proposal to increase the GILTI rate and make other onerous tax changes to how the minimum tax is calculated means fewer American jobs, less domestic investment and economic growth, and higher prices for consumers. The proposed change will significantly increase the tax burden on globally engaged American companies, making it harder to compete abroad with foreign competitors that are not subject to a similar level of taxation.

“This proposal puts the 71 million American jobs that depend on globally engaged American companies at risk at a time when policymakers should be working to accelerate economic growth in the wake of the pandemic. Simply put: The Biden Administration’s proposal to raise taxes on America’s job creators is the wrong approach, and we urge them to forgo these plans.”

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.”