Current House Tax Reform Bill Will Stifle U.S. Inv
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Here for America (HFA), a coalition of international automakers with manufacturing, R&D, sales and other operations throughout the U.S., applauds the House Ways and Means Committee for their continued efforts on making tax reform a reality. However, as businesses that are responsible for 1.29 million U.S. jobs and have invested over $75 billion in America, we are very concerned about a provision in the recently unveiled tax bill that would threaten these operations by imposing a discriminatory 20 percent excise tax targeted only at companies like those in the HFA coalition.
“Tax reform should reflect and support the importance of American manufacturing,” said John Bozzella, president and CEO of Global Automakers. “The current House bill (H.R. 1) is flawed and disadvantages companies that are a backbone of American manufacturing and job creation.”
More than twice as many companies build cars and trucks in the U.S. than when Congress last enacted tax reform three decades ago. Today, fourteen U.S. states are home to auto assembly plants and international automakers produce almost half of the vehicles made in the U.S.
The Internal Revenue Code and tax regulations already contain substantial provisions to prevent the arbitrary shifting of profits outside of the U.S. The excise tax provision is contrary to the goal of tax simplification, creates double taxation, penalizes large domestic companies that make purchases from foreign affiliates, and may conflict with Advance Pricing Agreements (“APA’s”) and tax treaties between U.S. and Foreign Tax Authorities.
“International automakers have made significant investments in their U.S. operations because they knew they would be treated fairly, and true tax reform should not create an unfair playing field,” said Bozzella. “That investment in U.S. manufacturing is largely the reason why auto states such as Ohio, Kentucky, and others are benefiting from record low unemployment.”
The Here for America members support tax reform that encourages further investment and innovation and we look forward to working with Congress to create commonsense tax reforms that will support those goals.
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Here For America tells the story of international automakers and dealers, their ever-growing impact on the U.S. economy, and the benefits they provide to local communities. The contributions of international automakers and dealers are integral to the success of today's U.S. auto industry, the most vibrant and competitive auto market in the world. Here for America is an initiative of the Association of Global Automakers to increase public education about the importance of international automakers to American job creation, economic growth, technological innovation and strong communities. Visit www.hereforamerica.com and follow Here For America on Twitter and Facebook .
* Vehicles are made, built, or manufactured in the United States using domestic and globally sourced parts.
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A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/Attachm...eab14ff1e8
Attachments:
A photo accompanying this announcement is available at http://www.globenewswire.com/NewsRoom/Attachm...2a1e4803d0
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