Chamber urges Congress to reject international tax increases

The U.S. Chamber of Commerce sent a letter to lawmakers urging them to reject legislative proposals that close international tax breaks. 

"Companies already are facing approximately $500 billion in onerous new taxes under the health care legislation over the next 10 years," the letter stated. "In order to keep American worldwide companies competitive, create and maintain jobs in America, and keep foreign investments flowing into the U.S. economy, Congress cannot impose punitive taxes every time they seek to spend money, especially when these tax incentives are targeted at the very employers that are in the best position to hire and keep the U.S. economy strong." 

The letter specifically mentions limiting or closing deferral, foreign tax credits, dividend exemptions for foreigners, transfer pricing, or treaties would hinder U.S. companies' competitiveness abroad.  

Lawmakers have already limited or closed some of these provisions to help pay for jobs legislation. They could also use less controversial international provisions to help pay for the extension of expired tax provisions, as well as other Democratic priorities. 

President Obama's FY 2011 budget to Congress included $122.2 billion in tax increases on U.S. multinational companies.