European Commission Directive Will Punish American Companies and American TaxpayersJanuary 27, 2016
Should Compel Congress to Address International Tax Reform Now
WASHINGTON, DC – American multinational corporations expressed concern about a new European Commission directive being unveiled on Thursday, and urged Congress to take quick action on international tax reform. The Commission’s directive, if approved by European countries, would allow foreign governments to retroactively tax American companies on earnings being held overseas. Responding to this development, American Innovation Matters spokesperson Lisa Camooso Miller issued the following statement:
“This is the latest example of the aggressive moves being made abroad in an effort to tax even more American earnings, and use them to pad the coffers of foreign governments. America’s broken tax code has locked billions of dollars out of the United States, and now other countries unjustly feel entitled to it. This could be a significant and costly blow not just for American companies, but for American taxpayers. Every American dollar captured in taxes by a foreign government is one less dollar that the American government will ever see.
“America’s approach to international taxation is a heavy anchor holding down our economy and our tax base. Congress needs to take concrete steps to address international tax reform this year.”
AIM is a coalition of American companies working to enact international tax reform and keep their R&D here in the United States.
AIM’s membership includes Cisco, Boeing, McGraw Hill Financial, Apple, Intel, Adobe, Oracle, Facebook and other companies whose strong investments in R&D and innovation help create new jobs and spur economic growth.