Business groups write Congress to protest tax on overseas revenue

A combination of 200 businesses and trade associations wrote House and Senate leaders, asking them to eliminate a tax in the Obama administration's budget on revenue earned by overseas subsidiaries.

The Obama administration's proposed budget would get rid of "deferral," which allows companies to defer paying U.S. taxes on money earned overseas. The money earned overseas is typically taxed by the government in which the subsidiary is situated.

"The administration's proposal to repeal 'deferral' would impose a unilateral tax on the foreign earnings of American companies, upsetting the competitive balance between U.S. and foreign companies," the letter stated. "We strongly urge Congress to reject this budget proposal that would impair the global competitiveness of U.S. companies and harm American workers and the U.S. economy."

The letter was addressed to Senate Majority Leader Harry Reid (D-Nev.), House Speaker Nancy Pelosi (D-Calif.), Senate Minority Leader Mitch McConnell (R-Ky.), and House Minority Leader John Boehner (R-Ohio).

View a copy of the letter and its signatories here.