Democratic Congress Members Urge Caution on International Tax Provisions
Democrats agree that raising taxes will harm U.S. competitiveness in global markets
Three congressmen from Texas — Reps. Vicente Gonzalez, Filemon Vela and Henry Cuellar — sent a letter to Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer urging them to rethink proposed changes to the international tax framework on Friday September 24. The members of Congress focused on the minimum tax the U.S. collects on the foreign operations of its companies, known as GILTI.
They wrote, “We support taxation policies that require corporations to pay their fair share. However, we cannot afford to foster anticompetitive behavior … We believe increasing the GILTI tax would inhibit U.S. competitiveness abroad and risk American jobs and capital investments.”
The U.S. is already the only country in the world that imposes a tax on foreign income. Raising this minimum tax would put American companies and their workers at an even greater competitive disadvantage compared to their foreign competitors who are not subject to similar taxes.
The success of American companies in foreign markets contributes to jobs at home. Higher U.S. taxes on the foreign income of American companies would make it even more difficult for U.S. companies and their workers to compete and win in global markets.
Read the full letter here.
Learn more about the Alliance for Competitive Taxation at www.actontaxreform.com.