Published: April 26, 2012
Washington – In testimony today, John Engler, President of Business Roundtable (BRT) urged Congress to immediately renew a series of important business tax provisions that expired at the end of 2011. The written testimony was submitted to the U.S. House of Representatives Committee on Ways & Means, Subcommittee on Select Revenue Measures.
In his testimony, Engler stated:
“Business Roundtable strongly supports the immediate and seamless extension of the expired business tax provisions from last year, including the research credit and important international provisions discussed below, as well as the temporary continuation of the 100 percent bonus depreciation rules that expired at the end of 2011.
“…Business Roundtable further urges that Congress move forward as soon as possible on a process to enact corporate tax reform providing a modernized, competitive and permanent tax system that eliminates confusion and uncertainty for America's job creators. Tax reform is absolutely essential to economic growth and job creation to be competitive in world markets today. A competitive corporate tax rate comparable to the OECD average and a competitive territorial tax system similar to the rest of the world are two essential components of corporate tax reform.”
In the absence of tax reform, however, 101 business tax provisions – many representing longstanding U.S. tax policies – have been allowed to expire. One example is the Research Credit, first implemented in 1981, designed to provide incentives for businesses to expand research and development in the United States. The R&D Credit has proven to be good for the economy and to support U.S. job creation, with nearly 70 percent of the credits being claimed by U.S. manufacturing companies.
Engler called for immediate bipartisan action to make certain U.S. competitiveness is not sacrificed, concluding:
“While the best solution to fixing our corporate tax system is permanent reform, we cannot afford to let important existing business provisions expire… Their expiration before a new permanent tax code is in place would diminish the competitiveness of American businesses and place at risk millions of U.S. jobs that depend on the ability of U.S. companies to compete in markets around the world.”
A copy of Mr. Engler’s testimony is available here.
Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies with over $6 trillion in annual revenues and more than 14 million employees. BRT member companies comprise nearly a third of the total value of the U.S. stock market and invest more than $150 billion annually in research and development – nearly half of all private U.S. R&D spending. Our companies pay $163 billion in dividends to shareholders and generate an estimated $420 billion in sales for small and medium-sized businesses annually.
BRT companies give nearly $9 billion a year in combined charitable contributions.