TechNet Statement on the Obama Administration’s Corporate Tax Reform Proposals
Washington, D.C. – TechNet, the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today released the following statement on the Obama Administration’s corporate tax reform proposals.
“Our current corporate tax system puts American companies at a disadvantage to foreign rivals, and severely discourages the use of overseas profits to create jobs and capital investments at home,” said Rey Ramsey, President and CEO of TechNet. “The fact is that when our current corporate tax system was last updated in 1986, most of today’s leading technology companies either did not exist or were in their infancy. Brazil, China and India were struggling; The European Union did not exist; and Russia was part of the Soviet Union. Corporate success was largely defined by how well you did in America. Today, U.S. technology companies – which represent an area of strong growth in our economy — conduct roughly 80% of their business overseas so these markets are absolutely vital to the health of our sector and to the overall economy. As such, our policy solutions must be doing everything they can to encourage these companies to create more value and job growth yet our tax code lags dangerously behind the realities of today’s dynamic global economy.”
“While we applaud the Administration’s proposal to make the R&D credit and clean energy tax credits permanent, to cut the corporate rate on manufacturing income, and their recognition of the importance of lowering the overall corporate tax rate, we are concerned that the proposal fails to recognize that U.S. technology companies operate in an incredibly competitive global environment. Specifically, while many of our global competitors have adopted a Territorial tax system to help their businesses compete on a global scale, this proposal moves us backward by making it harder to compete against overseas competitors who do not have these types of tax burdens. We realize this is an early step on the road to reform and we look forward to working with the Administration and Congress to improve our tax system for our 21st century global economy.”
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet’s members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin. Web address: www.technet.org <http://www.technet.org> <http://www.technet.org>. You can also follow us on Facebook and Twitter at @technetupdate.
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