TO THE MEMBERS OF THE UNITED STATES SENATE:
The U.S. Chamber of Commerce strongly supports the protocols that would amend existing conventions for the avoidance of double taxation with Switzerland, Luxembourg, Spain, and Japan, and urges you to approve them when they come before the Senate. The Chamber will consider including votes on these protocols in our annual How They Voted scorecard.
The United States and these countries enjoy mutual benefits from investing in each other’s industries and futures. Companies from these countries have invested more than $1.2 trillion in all 50 states, and hundreds of thousands of American jobs depend directly and indirectly on these trade and investment ties.
Due to the complexity of the U.S. tax system, it is not uncommon to see instances of double taxation of income earned by U.S. companies doing business abroad. For more than eight decades, tax treaties have helped provide clarity with regard to situations where two countries have the right to levy income tax.
Tax treaties make the United States a more attractive destination for foreign investment, and they promote economic growth while fostering fairness in international tax treatment. These treaties establish clear rules to avoid double taxation and provide administrative procedures for U.S. taxpayers, treaty-partner taxpayers, and the United States and foreign taxing authorities themselves to resolve disagreements and assist in the enforcement of tax laws.
The Chamber also urges the Senate to approve the new conventions for the avoidance of double taxation with respect to taxes on income with Hungary, Poland, and Chile, which have also been awaiting action for several years. We are hopeful that approving the four protocols now before the Senate will clear a path for consideration of these new treaties soon. The Chamber urges the Senate to approve these treaties expeditiously.
Suzanne P. Clark
U.S. Chamber of Commerce