Corporate heavyweights form new tax reform coalition

The membership list for the coalition reads like a who's who of corporate America.

The 42 groups in the alliance include pillars of the tech community like Cisco Systems, Intel and Google, which have previously pushed for a corporate tax holiday. Other backers include Wal-Mart, Nike, Alcoa, Bank of America, JPMorgan Chase, General Electric, Honeywell, Pfizer, Johnson & Johnson, FedEx and Caterpillar.

In the statement announcing its formation, the alliance suggested it wants to move toward a framework that shields corporations’ offshore income from U.S. taxation by adopting the so-called territorial system used by most other industrial nations.

“Our top national priority should be growing our economy and creating well-paying jobs,” said Tyson, who served as chairman of the Council of Economic Advisers under President Clinton. “But our current corporate tax system is standing in the way. We need comprehensive revenue-neutral corporate tax reform to boost investment, productivity, and job creation in the U.S. and to strengthen the competitiveness of U.S. businesses in the global economy.”

The alliance said lawmakers should not raise taxes on small businesses — many of which pay taxes through the individual code — to pay for corporate reform. Instead, tax breaks should be scrapped to cover the cost of lowering rates, the group said. 

With its launch, the alliance joins the RATE Coalition in pushing for a rewritten corporate tax system. A separate coalition, LIFT America, is more focused on shifting the U.S. to a territorial system.

— This story was updated at 1:23 p.m.