U.S. Taxes are Out of Sync with World’s Leading Economies

Business Roundup Today

Hearing Proves Imperative of Tax Reform

A Senate hearing on Apple's tax bill proves the point: America's tax system is broken.

America Proposes Increasing Already High Corporate Taxes as the Rest of World Moves in Opposite Direction

The United Kingdom and Japan recently reformed their international tax systems to provide a permanent tax exemption for most foreign earnings of U.K. and Japanese companies. Now 26 of 34 OECD (Organization for Economic Cooperation and Development) countries employ a “territorial” tax system that does not tax the worldwide earnings of their global companies.
- For example, U.K. and Japanese companies pay taxes to Germany on their German earnings, but do not pay taxes on their German earnings to the United Kingdom or Japan.
- A U.S. company operating in Germany, on the other hand, pays taxes on its German earnings both to Germany and the United States.

Only seven OECD countries, in addition to the United States, tax the worldwide earnings of their global companies: Chile, Greece, Ireland, Israel, Korea, Mexico, and Poland.
- Each of these countries, however, has significantly lower corporate tax rates than the United States – which, in 2012, will have the highest combined corporate tax rate in the OECD at 39.2 percent.
- Each of these countries – including the United States – currently allow their companies to defer paying tax on foreign earnings until those earnings are paid as a dividend to the parent company back in the home country.
When a U.S. company competes globally, it is virtually certain to be competing with a company that is not taxed on its foreign earnings – creating a competitive disadvantage for the American company.
The U.S. Treasury Department now proposes to fundamentally rewrite the basic rules of international taxation that have been in existence for nearly 100 years and impose more than $100 billion in new taxes on U.S. companies operating in foreign markets.
While most of the world is striving to make their companies more competitive, the United States is moving in the opposite direction.

Date	Title	Description
04/10/2013	Background Paper on Conflict Minerals Disclosure Rule	Section 1502 of the “Dodd-Frank Wall Street Reform and Consumer Protection Act” (Dodd-Frank Act) directs the U.S. Securities and Exchange Commission (SEC) to promulgate regulations regarding the use of conflict minerals from the Democratic Republic of Congo (DRC) and adjoining countries.
04/10/2013	Taking Action on Immigration	The time has come for realistic immigration solutions that will both strengthen national security and boost economic growth. America needs an immigration system that places more resources toward enforcement of laws, produces a more dynamic and skilled labor force, and enables U.S. businesses and workers to compete more effectively in the global marketplace. Getting reform right is essential to a healthier economy — accelerating growth, encouraging hiring and creating jobs.
04/09/2013	Reauthorization of the Workforce Investment Act	As Congress moves forward with the long-overdue reauthorization of the Workforce Investment Act (WIA), Business Roundtable encourages policymakers to embrace the following principles to ensure a far more effective and efficient workforce investment system in this nation.
04/08/2013	Background Paper on OTC Derivatives End-User Exemption	Regulations implementing “Dodd-Frank Wall Street Reform and Consumer Protection Act” (Dodd-Frank Act) provisions that impact end-users of derivatives need to be carefully tailored so that they do not disrupt risk-management practices that pose no systemic risk to the economy.
03/04/2013	Background Paper on Keystone XL Pipeline Project	The State Department is responsible for issuing “presidential permits” for cross-border pipelines. In the past, such as the case with Enbridge’s Alberta Clipper pipeline, permits have been granted with little or no controversy.
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Date

Title

Description

04/10/2013

Background Paper on Conflict Minerals Disclosure Rule

Section 1502 of the “Dodd-Frank Wall Street Reform and Consumer Protection Act” (Dodd-Frank Act) directs the U.S. Securities and Exchange Commission (SEC) to promulgate regulations regarding the use of conflict minerals from the Democratic Republic of Congo (DRC) and adjoining countries.

04/10/2013

Taking Action on Immigration

The time has come for realistic immigration solutions that will both strengthen national security and boost economic growth. America needs an immigration system that places more resources toward enforcement of laws, produces a more dynamic and skilled labor force, and enables U.S. businesses and workers to compete more effectively in the global marketplace. Getting reform right is essential to a healthier economy — accelerating growth, encouraging hiring and creating jobs.

04/09/2013

Reauthorization of the Workforce Investment Act

As Congress moves forward with the long-overdue reauthorization of the Workforce Investment Act (WIA), Business Roundtable encourages policymakers to embrace the following principles to ensure a far more effective and efficient workforce investment system in this nation.

04/08/2013

Background Paper on OTC Derivatives End-User Exemption

Regulations implementing “Dodd-Frank Wall Street Reform and Consumer Protection Act” (Dodd-Frank Act) provisions that impact end-users of derivatives need to be carefully tailored so that they do not disrupt risk-management practices that pose no systemic risk to the economy.

03/04/2013

Background Paper on Keystone XL Pipeline Project

The State Department is responsible for issuing “presidential permits” for cross-border pipelines. In the past, such as the case with Enbridge’s Alberta Clipper pipeline, permits have been granted with little or no controversy.

1 2 3 > Last »

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Hearing Proves Imperative of Tax Reform

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