Letter Opposing a Provision, which would Undermine Existing U.S. Tax Treaties, Included in H.R. 847, the "James Zadroga 9/11 Health and Compensation Act of 2010"
TO THE MEMBERS OF THE U.S. HOUSE OF REPRESENTATIVES:
The U.S. Chamber of Commerce, the world’s largest business federation representing the interests of more than three million businesses and organizations of every size, sector, and region, opposes a provision, which would undermine existing U.S. tax treaties, included in H.R. 847, the “James Zadroga 9/11 Health and Compensation Act of 2010.”
Specifically, the Chamber strongly opposes the tax on foreign-owned companies doing business in the United States. This provision, which would raise taxes on foreign corporations that invest and create jobs in the United States, would discourage foreign investment in the United States, override long-standing tax treaties, damage U.S. relationships with major trading partners, and could prompt retaliation by foreign governments against U.S. companies operating abroad. This would further aggravate already jittery financial markets. At a time when governments around the world are enhancing their companies’ competitiveness by cutting corporate taxes, this provision would create an even more hostile tax environment in the United States. Such a provision sends precisely the wrong message to those firms wanting to invest in America.
The Chamber urges you to remove this provision from H.R. 847 to avoid detrimental impacts on the flow of foreign capital into the United States.
R. Bruce Josten