190620 taxtreaties senateforeignrelations
June 20, 2019
Dear Chairman Risch and Ranking Member Menendez:
The U.S. Chamber of Commerce strongly supports the seven bilateral tax treaties pending approval before the Senate and urges you to approve them. These include protocols that would amend existing conventions with Switzerland, Luxembourg, Spain, and Japan, which we understand the Committee will consider shortly. We also urge you to approve conventions for the avoidance of double taxation with respect to taxes on income with Hungary, Poland, and Chile as soon as possible.
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.
Historically, tax treaties such as these have been approved by unanimous consent. The business community is eager to see these treaties enacted as soon as possible. The Chamber urges the Senate to approve these treaties expeditiously.
Neil L. Bradley
cc: Members of the Senate Committee on Foreign Relations