Dear Members of the United States Senate:

With less than six months left this year to resolve critical tax and fiscal issues facing this nation, it is essential that Congress and the White House put its full energies to addressing this matter and end the needless uncertainty that has impeded a more robust economic recovery and threatens to drive the economy into recession.

Beyond a short-term extension through 2013 of the expired and expiring tax provisions affecting businesses and individuals, we must undertake comprehensive tax reform to improve the ability of American businesses and American workers to be globally competitive.

This week we see the Senate debating Senator Deborah Stabenow’s bill, S. 3364 -- which would saddle American businesses with new costs not faced by their foreign competitors. American businesses already face the highest statutory corporate tax rate among developed countries and are subject to an antiquated international tax system.

The Stabenow bill would raise taxes on many American job creators. Thus, the bill is inconsistent with the pro-growth and pro-competitiveness policies that Congress should enact to fully enable America’s job creators to win in the competitive world marketplace. Rather than raising taxes on American businesses, we need economic growth legislation and comprehensive tax reform, which will result in more jobs and higher incomes.

Comprehensive tax reform should include a meaningful reduction in the corporate tax rate and a competitive territorial tax system like those of most other industrialized economies. This is essential to improving American competitiveness and providing a level playing field.

Foreign markets represent 95 percent of the world's consumers -- billions of people with rising incomes in countries like China, India and Brazil. Expansion by American companies to serve these markets does not subtract jobs from the U.S. but instead adds valuable jobs at home and results in more investment in the United States. We should support globally engaged businesses, not impede their attempts to grow.

Business Roundtable strongly encourages you to focus immediately on the issues critical to the continued growth of the economy, rather than debating legislation that would move us in the opposite direction. Comprehensive tax reform is a vital component of a job creation and economic growth strategy.

We look forward to working with you to address these important tax and fiscal policy issues to create jobs and grow the economy.

Sincerely,

John Engler