Foreign tax credits (FTCs) were included in the code to avoid the double-taxation of foreign-sourced income. But House Ways and Means Chairman Sandy Levin (D-Mich.) told reporters on Tuesday that U.S. multinationals have abused the credits, which has hurt domestic job growth.
"There are some companies who have used techniques to maximize the amount of money that they leave overseas at the same time they are claiming the FTCs to avoid U.S. taxation," he said, adding, "What that has everything to do with is tilting the playing field in favor of investment overseas, and this manipulation of the code really hurts American jobs."
Business Roundtable claims the $14 billion tax increase will be absorbed by a sector of the economy that contributes 63 million jobs, and is responsible for nearly half of U.S. exports.
"We need to send a signal to the world that the United States is open for business -- that we want more job-producing investment, not less," Castellani said. "Business Roundtable CEOs urge Congress to seriously consider fundamental tax reforms to improve the competitiveness of the U.S. economy. The proposed tax extenders bill is not the appropriate place for ad hoc permanent international revenue increases."
The House is expected to vote on the extender bill later Wednesday, with the Senate following suit before the Memorial Day recess.