Jun 19, 2013 - corporate tax rate. ... and grow business in the United States, thereby making U.S. companies less compet
June 19, 2013 The Honorable Dave Camp Chairman House Committee on Ways and Means United States House of Representatives 1102 Longworth House Office Building Washington, DC 20515
The Honorable Max Baucus Chairman Senate Committee on Finance United States Senate 219 Dirksen Senate Office Building Washington, DC 20510
The Honorable Sandy Levin Ranking Member House Committee on Ways and Means United States House of Representatives 1102 Longworth House Office Building Washington, DC 20515
The Honorable Orrin Hatch Ranking Member Senate Committee on Finance United States Senate 219 Dirksen Senate Office Building Washington, DC 20510
Dear Chairmen Camp and Baucus and Ranking Members Levin and Hatch: We are writing to urge you to act without delay to reform America’s tax code by creating a system that is simpler and fairer for all businesses and substantially reduces America’s 35 percent statutory corporate tax rate. In our capacity as tax vice presidents and senior tax officers for some of the largest U.S. companies and employers, we’re faced with the challenges of America’s complicated tax code and burdensome tax rate. The tax code is littered with preferences that pertain to only certain industries while simultaneously imposing a tax rate that overly burdens businesses large and small. In the end, our outdated, overcomplicated tax code and high rate limit the ability of American companies to invest, hire and grow business in the United States, thereby making U.S. companies less competitive in the global marketplace while stifling economic growth here at home. The high statutory tax rate also acts to discourage foreign investment in the United States further reducing the potential for economic and job growth. Over the past 25 years, many OECD countries have significantly reduced their rates to lure business and jobs. A weakened global economy has done nothing to reverse this trend. In fact, U.S competitors such as Sweden, Japan, Canada and the United Kingdom have recently enacted measures that will result in significantly lower rates and simpler systems. For over a year, America’s 35 percent federal rate has ranked as the highest in the OECD. Add to it state taxes and the corporate rate is near 40 percent. The negative effects of standing still are clear. According to a recent Ernst & Young study, U.S. GDP in 2013 is expected to be between 1.2 and 2.0 percent lower as a result of our OECD-leading corporate tax rate. These foregone resources could be used to make further investments in the economy. Additionally, American workers will continue to feel the pinch in their paychecks as a result of our uncompetitive tax system. Over the long term, U.S. wages will be depressed by 1.2 percent as other countries seek to lower their corporate tax rates. The American economy, American business and American workers can no longer afford our tax system. It is outdated, unfair and in desperate need of reform – this year. For these reasons, we write to you today as part of the RATE (Reforming America’s Taxes Equitably) Coalition, a bipartisan group of 31 businesses and associations representing nearly one-third of all U.S.
jobs that is committed to reforming our tax code and substantially reducing the federal corporate tax rate in order to improve America’s global competitiveness. While many of our companies are able to utilize existing tax preferences included in the current tax code, we believe that America would benefit from a system that treats everyone the same –a system with a substantially lower statutory corporate tax rate that is applied fairly to all companies across all industries. Our companies understand that such an approach may require some businesses to pay a little more and some to pay a little less, and that nearly all businesses will need to forgo certain provisions that are in place today. As members of the RATE Coalition, our companies collectively recognize that basebroadeners, such as the elimination of tax expenditures, may be required in order to achieve a corporate tax rate that is globally competitive, supports U.S. economic growth and is equitable to all U.S. businesses. Over the last year – in large part because of the diligent work of your respective committees – momentum in Congress for tax reform has grown. However, with debate on raising the debt limit looming this fall and 2014 political activities just a few short months away, time is limited and action on tax reform is needed immediately. American businesses – and the American public – are united in a desire to see comprehensive tax reform implemented this year. Our companies stand with Congress to support you in making the tough decisions that will be required to make real tax reform a reality. Thank you for your consideration of this important matter. Sincerely, John Coccagna Vice President, Corporate Taxes Altria Group, Inc.
Lawrence Ruzicka Senior Vice President - Tax AT&T
Paul Cappiello Vice President of Tax Babcock & Wilcox
Jim Zrust Vice President, Tax The Boeing Company
Mike Fryt Corporate Vice President, Tax FedEx Corporation
Diane Dossin Chief Tax Officer Ford Motor Company
Ronald D. Dickel Vice President Global Tax and Trade Intel Corporation
Albert Rosenthaler Senior Vice President Liberty Media Corporation
David A. Heywood Vice President, Taxes & General Tax Counsel Lockheed Martin Corporation
Rachelle Bernstein Vice President, Tax Counsel National Retail Federation
Wayne Monfries Chief Tax Officer NIKE Inc.
Nancy G. Sturgeon
VP Tax & Asst. Gen Counsel RAI Services Company
Chris Miller Vice President of Tax T-Mobile USA, Inc.
Mark Schichtel Senior Vice President and Chief Tax Officer Time Warner Cable Inc.
Don Lancaster Vice President of Tax United Parcel Service
William P. Van Saders Senior Vice President and Deputy General Counsel - Corporate Taxes Verizon Communications Inc.
Anne Buettner Senior Vice President - Corporate Tax The Walt Disney Company
cc:
House Speaker John Boehner House Minority Leader Nancy Pelosi Senate Majority Leader Harry Reid Senate Minority Leader Mitch McConnell Members of House Committee on Ways & Means Members of the Senate Finance Committee
