By Jay Heflin - 06/03/10 05:19 PM EDT
The extender bill raises approximately $14 billion by limiting tax credits used by U.S. multinational companies that are supposed to prevent double taxation. But House Ways and Means Chairman Sandy Levin (D-Calif.) said many of these companies have manipulated these credits beyond their intended use, which has led to "tilting the playing field in favor of investment overseas" and has hurt the creation of U.S. jobs.
Castellani disagrees with that assessment.
"This is a case where the political rhetoric trumps the economic reality," he said.
He argues that foreign tax credits directly support about 20 million U.S. jobs.
"Those workers make on average about 25 percent more than their counterparts," he said. "So those are the jobs that are at risk."
Castellani would like the senators to table the debate on foreign tax credits until Congress takes up full-blown tax reform.
"We all know our system of taxing foreign income is broken, and we want to step back and have a comprehensive review so that we have something that keeps us competitive and is fair and transparent," he said. "The way to do it is not this piecemeal, take away bits and pieces of it, and make it worse."
Castellani said there is a group of senators who have been "very supportive of making sure that U.S. companies are competitive internationally," but did not name names.
"We're reinforcing that [position] with them and talking to them," he said.
It is unclear when the Senate will take up the bill.