Press Releases and Statements Archives - Page 19 of 104

NFTC Welcomes Senate Passage of Tax Treaties

Posted on July 17, 2019 by dcadmin

Washington D.C.- National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today issued the following statement following Senate passage of bilateral treaty protocols with four countries:

“The NFTC applauds the Senate for voting to approve the bilateral tax treaty protocols with Spain, Switzerland, Japan and Luxembourg that had been held up for nine years by Senator Rand Paul and we thank members for opposing amendments proposed by Senator Paul that could have furthered delayed passage of these treaties.

“Income tax treaties play a critical role in fostering U.S. bilateral trade and investment and protecting U.S. businesses, large and small, from double taxation of the income they earn from selling goods and services in foreign markets. The delay in the passage of these protocols increased uncertainty and created economic burdens for U.S. companies operating abroad, and it limited foreign direct investment in the U.S.

“Three of the protocols approved today – Spain, Switzerland and Japan – include mandatory binding arbitration provisions that will facilitate the resolution of tax disputes and relieve double taxation, a provision that is strongly supported by the NFTC and its member companies.

“Passage of these protocols signals to the world that the U.S. can once again be looked at as a trusted treaty partner, and we look forward to putting years of treaty holds behind us and to the Senate resuming a regular schedule of approving tax treaties that strengthens our economy and ensures fair tax treatment for our companies around the world.”

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About the NFTC
Serving America’s Global Businesses Since 1914– The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules- based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves its member companies through its office in Washington D.C.

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NFTC Applauds USTR Section 301 Investigation into France’s Digital Tax

Posted on July 10, 2019 by dcadmin

Washington D.C. – National Foreign Trade Council (NFTC) Vice President for Global Trade and Innovation Jake Colvin today issued the following statement following the announcement by the Office of the United States Trade Representative (USTR) that it would initiate an investigation into the French Government’s digital tax policies:

“NFTC strongly supports today’s move by USTR to investigate France’s unilateral digital tax policy, which amounts to a discriminatory tariff on American technology companies and threatens transatlantic trade ties.

“France’s new digital services tax disproportionately affects innovative American companies while carving out French competitors. The design of this new tax suggests it was tailored specifically to impose a financial burden on successful U.S. companies.

“In light of today’s announcement, we urge the French Government to reconsider its unilateral tax and focus instead on achieving a multilateral consensus to reform global tax rules for the digital age that is underway at the Organization for Economic Cooperation and Development (OECD).”

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NFTC Statement on French Digital Services Tax

Posted on July 8, 2019 by dcadmin

Washington D.C.- National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today issued the following statement after France’s lower house approved a digital services tax bill last Thursday:

“Under the proposal passed in France last week, U.S. companies could be charged up to five percent of gross revenue retroactively to January 1, 2019. This proposal will disproportionately affect U.S. technology exporters by setting a threshold that effectively carves out all French competitors and it undermines the global consensus-based process underway at the Organization for Economic Cooperation and Development (OECD).

“The NFTC urges the Administration to send a strong message to France that, while we agree that global tax rules must be updated for the digital age, unilateral, discriminatory taxes against U.S. firms are not an appropriate solution.”

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NFTC Statement on G-20 Finance Ministers Meeting

Posted on June 10, 2019 by dcadmin

Washington D.C.- National Foreign Trade Council (NFTC) Vice President for Tax Policy Cathy Schultz today issued the following statement following the culmination of a meeting of G-20 finance ministers in Japan over the weekend:

“There have been misleading press reports coming out of this weekend’s G-20 finance minister’s meeting in Japan regarding an agreement on taxation. At the meeting, the Finance Ministers of the G-20 gave their approval for the OECD to move forward with a proposed work program that has two pillars for changing the international tax system: 1) changing the nexus standards and reallocating profits between export countries and market jurisdictions; and 2) developing a minimum tax regime. This proposed Work Program will apply to all companies included in the parameters set out by the OECD working groups and will not be limited to digital companies as some press reports have suggested. The OECD project will rewrite many of the existing international tax rules governing most multinational corporations and the OECD anticipates completing the profit allocation project by the end of 2020.

“The NFTC will continue to work with the Administration and Congress as well as multinational organizations across the globe to ensure fair and equal tax treatment for our companies around the world.”

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NFTC Statement on Mexican Tariffs

Posted on May 31, 2019January 4, 2023 by dcadmin

Washington D.C.- National Foreign Trade Council (NFTC) President Rufus Yerxa today issued the following statement following an announcement by the White House that the U.S. will impose escalating tariffs on all goods imported from Mexico on June 10th.

“Last night’s action to raise tariffs on all imports from Mexico was a dangerous and destabilizing move that will damage both Mexico and the United States. The President should reconsider the wisdom of this measure before it causes any real damage.

“Raising tariffs indiscriminately on all imports from Mexico is terrible economic policy. It will cause untold harm to American manufacturers, consumers and exporters. The auto industry, which relies heavily on cross-border supply networks, will be one of the biggest victims, but most other U.S. manufacturers will also suffer harm. Our farmers and ranchers, who are already facing decreased access to international markets, will now face renewed threats of retaliatory tariffs from their largest export market. Most importantly, American consumers will pay higher prices for everything from avocados to clothing to cars.

“This action will have repercussions throughout Mexico’s economy, which will intensify, rather than reduce, the problems at the border. Mexico depends heavily on a stable partnership with the United States and has opened its own economy substantially to U.S. exports and investment since the NAFTA was implemented more than 20 years ago. Tariffs are not the way to fix the very real problems of illegal immigration at our southern border.

“International trade and investment is a two-way street. Radical and sudden action against our neighbor and best trading partner, using a law that has only been invoked against rogue nations and sponsors of terrorism, is an action unworthy of a great nation and world leader.”

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NFTC Files Amicus Brief with Supreme Court in 232 Case

Posted on May 17, 2019 by dcadmin

Washington D.C.- The National Foreign Trade Council (NFTC) today filed an amicus brief with the U.S. Supreme Court supporting a petition for certiorari in the case of American Institute for International Steel v. United States, a legal challenge to the constitutionality of Section 232 of the Trade Expansion Act, the law used by the Administration to impose national security tariffs on steel and aluminum imports.

“The NFTC filed this brief today to underscore an important pillar of the Constitution – that only Congress has the power to regulate foreign commerce. Under our Constitution, the President is only supposed to have authority to raise tariffs in clearly defined situations and only to a limited extent,” said Rufus Yerxa, President of the NFTC. “His use of Section 232 to impose sweeping and open-ended tariffs on steel and aluminum is proof that the statute itself is too broad and too vague to withstand a Constitutional test.”

The brief, filed by the NFTC on behalf of its 100 member companies who collectively represent a significant portion of U.S. manufacturing and exports, argues that that the actions taken on steel and aluminum demonstrate that this statute violates Constitutional norms relating to delegation of Congressional powers to the President because:

The recent 232 actions profoundly damage U.S. national interests;
The recent 232 actions are beyond anything that has been considered by the Court in the past; and
Section 232 has none of the restrictions that characterize other provisions granting Presidential tariff authority

“The Court should not allow any President to exercise unfettered power over entire sectors of trade simply by invoking the words ‘national security,’ Yerxa added. “This law needs to be redrawn to require a higher standard and allow disruptive trade actions only when justified by real security concerns rather than protectionist pressures.”

NFTC retained Keith Bradley, of Squire Patton Boggs, as outside counsel on the brief.

For a backgrounder on the brief, click here.

For a full copy of the brief, click here.

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Executives Find Tax Reform’s Impact Unclear in 13th Annual Tax Policy Forecast Survey by Miller & Chevalier and the National Foreign Trade Council

Posted on April 30, 2019 by dcadmin

Wahington D.C. – Almost 18 months after the passage of the Tax Cuts and Jobs Act of 2017 (TCJA), tax executives remain undecided about the law’s impact on U.S. businesses, and many respondents continue to seek regulatory guidance to understand its full effect, according to the results of the 2019 Tax Policy Forecast Survey, published today by Miller & Chevalier Chartered and the National Foreign Trade Council (NFTC).

Nearly half of respondents saw their company’s taxes decrease under TCJA, but executives don’t think they can adequately assess the law’s complete effect on their businesses without further clarifications. Although the U.S. Department of the Treasury and the Internal Revenue Service have issued a significant body of regulatory guidance on TCJA in the past year, executives remain unsure how they should plan and potentially restructure their businesses accordingly.

“TCJA is a complex piece of legislation with a myriad of business implications to consider before any shifts can be made,” said Miller & Chevalier Chair Marc Gerson, former majority tax counsel to the House of Representatives’ Committee on Ways and Means. “Our respondents’ search for clarity shows that companies are doing their due diligence to understand the legislation.”

In a near-even split, respondents identified global intangible low-taxed income (GILTI), the base erosion and anti-abuse tax (BEAT), and the limitation on the deduction of business interest expense as the TCJA provisions for which businesses need the most guidance.

“While most respondents agree that the reduction in the corporate tax rate from 35 percent to 21 percent was a key benefit of the legislation, the interaction of TCJA’s international provisions with existing rules may result in the anticipated reduction to taxpayers’ effective tax rates to be somewhat muted,” said Miller & Chevalier Tax Department Member Loren Ponds, who is also a former majority tax counsel to the House of Representatives’ Committee on Ways and Means. “Our respondents’ attention to GILTI and BEAT shows that they’re cognizant of the potential impact and are eager for regulatory guidance to address the nuances of the rules and certain perverse interactions that have come to light since TCJA’s enactment.”

In light of the divided Congress, a large percentage of respondents don’t expect any tax legislation to advance this year despite significant interest in technical corrections to the TCJA and tax extenders.

“In particular, respondents have a close eye on the Tax Extender and Disaster Relief Act of 2019 that was recently introduced in the Senate, which would retroactively extend those provisions that expired at the end of 2017 and the end of 2018,” said Miller & Chevalier Tax Department Member Jorge Castro, former counselor to the IRS Commissioner. “Respondents also have significant interest in Congress enacting technical corrections to TCJA. Absent such legislative action, pressure will continue to mount on Treasury and IRS to provide clarification.”

Bipartisan agreement would be required to move tax extenders and technical corrections forward, which was reflected in respondents’ belief that Senate Majority Leader Mitch McConnell (R-KY) would have the largest impact on tax policy this year, followed by House Speaker Nancy Pelosi (D-CA). But with a limited window of opportunity given the impending 2020 elections, the likelihood of such bipartisan legislation is not high.

“Respondents’ view of congressional leaders as having the most influence on tax policy this year is in keeping with results we’ve seen in almost every one of our prior surveys,” said Cathy Schultz, National Foreign Trade Council Vice President for Tax Policy.

Survey Highlights

Executives were almost evenly split between three TCJA provisions for which they’d like additional guidance: GILTI (32 percent), the BEAT (29 percent), and the section 163(j) business interest deduction limitation (29 percent). Thirty-one percent of respondents said that no additional guidance is needed.
Forty-two percent of executives would like to see technical corrections made to TCJA, and 32 percent want temporary TCJA provisions to be extended or made permanent. However, most respondents don’t think any legislation will be enacted into law in 2019 given the divided Congress.
The largest percentage of respondents (39 percent) believe that the U.S. economy will have the most significant positive impact on tax policy in 2019. This suggests there is some hope for legislative changes to be made this year, despite executives’ (31 percent) belief that the inability of Congressional leaders and the White House to reach agreement will most negatively impact tax policy in 2019.

A full copy of the survey results and analysis is available here. A link to the survey results infographic is available here.

About Miller & Chevalier
Founded in 1920, Miller & Chevalier is a Washington, DC, law firm with a global perspective and leading practices in Tax, Litigation, International Law, Employee Benefits (including ERISA), White Collar Defense and Internal Investigations, and Government Affairs. Miller & Chevalier is a top-ranked firm sharply focused on targeted areas that interact with the federal government. Over the past three years, the firm’s lawyers have represented more than 40 percent of the Fortune 100, one-quarter of the Fortune 500, and approximately 30 percent of the Global 100. Based in Washington, DC, a significant number of firm lawyers have held senior positions in the U.S. government and have written many of the regulations they currently help clients navigate. For more information on the firm, visit www.millerchevalier.com.

About the National Foreign Trade Council
The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating a rules-based world economy. Founded in 1914 by a group of American companies that supported an open world trading system, the NFTC and its affiliates now serve more than 200 member companies through its office in Washington, DC.

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CONTACTS:
Marc Gerson, Chair, Miller & Chevalier, 202.626.1475
Loren Ponds, Tax Department Member, Miller & Chevalier, 202.626.5832
Jorge Castro, Tax Department Member, Miller & Chevalier, 202.626.5859
Catherine Schultz, Vice President for Tax Policy, National Foreign Trade Council, 202.887.0278, ext. 104
Megan Duero, Media Relations, Greentarget, 312.253.7293

NFTC Urges Senate to Act on Pending Tax Treaties

Posted on April 30, 2019 by dcadmin

Washington D.C. – The National Foreign Trade Council (NFTC) yesterday joined leading industry associations urging prompt approval of bilateral income tax treaties and protocols pending before the Senate Foreign Relations Committee through a letter sent to Senate Majority Leader Mitch McConnell and Senate Foreign Relations Committee Chairman James Risch.

The letter, signed by more than 85 companies, highlights the critical role of income tax treaties “in fostering U.S. bilateral trade and investment and protecting U.S. businesses, large and small, from double taxation of the income they earn from selling goods and services in foreign markets.”

“For the past 80 years, the U.S. has pursued tax treaties with foreign trading partners to promote investment and certainty for U.S. businesses operating internationally,” said Cathy Schultz, NFTC Vice President for Tax Policy. “Pending treaties would cover foreign investment of over $1.2 trillion across the country, so hundreds of thousands of jobs rely on swift ratification of these treaties.”

Full text of the letter can be found here.

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About the NFTC
Serving America’s Global Businesses Since 1914– The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules- based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its office in Washington D.C.
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NFTC Statement on U.S. Cuba Policy Changes

Posted on April 17, 2019 by dcadmin

Washington D.C.- National Foreign Trade Council Chairman Carlos Gutierrez today released the following statement in response to the Administration’s announcement of changes to U.S. policy towards Cuba:

“The changes announced today will undermine the ability of Americans to engage with the Cuban people and threaten to further poison relations with key U.S. allies.

“We’ve seen this movie before. The United States limited travel by U.S. citizens and remittances for years without achieving our stated foreign policy goals. Today’s announcement repeats mistakes of the past and does nothing but harm the Cuban people.

“In addition, by activating Title III and stepping up enforcement of Title IV of the Helms-Burton Act, the Administration is needlessly picking a fight with key American allies whose businesses and citizens could be subject to U.S. court proceedings and travel restrictions.”

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About the NFTC
Serving America’s Global Businesses Since 1914– The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules- based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.
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NFTC Urges Administration to Address Border Delays

Posted on April 9, 2019 by dcadmin

Washington D.C.- National Foreign Trade Council (NFTC) President Rufus Yerxa today sent a letter to Kevin McAleenan, current U.S. Customs and Border Protection (CBP) Commissioner and Acting Secretary of Homeland Security, regarding the concerns among large sectors of the U.S. business community about the slow-downs in clearing commercial cargo at the U.S. – Mexico border.

“While we are relieved that the U.S.-Mexico trade relationship is no longer under imminent threat from a full border closure, the relocation of CBP officers who work on cargo clearance to assist with border patrol operations has led to major delays to the supply chains of some of our most competitive industries,” said Rufus Yerxa. “This is disrupting manufacturing plants here in the U.S. and will cause immediate harm to workers and consumers throughout the country. It is crucial that the Administration refrain from causing such harm and work together with Congress to maintain smooth and efficient commercial operations at our southern border.”

The full text of the letter:

The Honorable Kevin McAleenan

Acting Secretary of Homeland Security and

Commissioner of U.S. Customs and Border Protection

3801 Nebraska Avenue, NW

Washington, DC 20016

Dear Mr. Secretary:

On behalf of the members of the National Foreign Trade Council (NFTC), we are writing to express our serious concerns about measures being taken by Customs and Border Protection (CBP) at the U.S. – Mexico border. Recently, the Department of Homeland Security (DHS) relocated 750 CBP officers who work on cargo clearance at U.S. ports of entry to assist with Border Patrol operations. Since this measure was implemented, commercial cargo has experienced significant delays and back-ups at border crossings, many lasting four to five times the normal wait times. As a result, vital goods and commodities are not reaching their U.S. destinations on time.

NFTC companies are leaders in the autos, technology, food, retail and logistics sectors of the American economy. They play a significant role in the $1.5 billion trade in goods that cross that border each day and they depend on this two-way trade to support American manufacturing, transportation and services jobs. They also depend on smooth and efficient commercial cargo operations at the border to enable this trade to flow.

While we fully understand the importance of improving border security and addressing the serious concerns relating to immigration, it is vital that the Administration and Congress find a way to address these problems without impeding the free flow of commerce between the two countries.

While we appreciate that the Administration is no longer threatening to close the border to all traffic, U.S. manufacturers, retail and service providers depend on the “on time” arrival of their cargo. Delays at the border have a ripple effect over time and create collateral damage for auto production lines, U.S. manufacturing operations, retailers and consumers. Because of delays and uncertainty at the border, U.S. companies are being forced to reroute cargo through other ports of entry, a costly exercise that may not always be possible since certain types of cargo are more efficiently, and sometimes exclusively, moved via truck.

We understand that the need for resources at the border has been the motivating factor in the redeployment of CBP personnel and that this redeployment is the root cause of the slowdowns we are describing. However, we urge your department to work together with Congress to ensure that resources are not diverted from the commercial mission of CBP. We also urge you to ensure that the Secretary of Commerce, who has the responsibility of promoting and expanding U.S. business, is fully engaged in your consultations with Congress. Severely constricting the ability of U.S. manufacturers, retailers and service providers to move cargo across our southern border will jeopardize the economic strength of the U.S. economy and will negatively impact American consumers and our most dynamic and productive companies.

We strongly urge you to take these concerns into account and to work towards a quick solution that preserves the ability of cross-border trade to contribute to the health of our economy.

Sincerely,

Rufus Yerxa

President

National Foreign Trade Council

cc:

Honorable Wilbur Ross, Secretary of Commerce
Honorable Chuck Grassley, Chairman, Senate Committee on Finance
Honorable Ron Johnson, Chairman, Senate Homeland Security and Governmental
Affairs Committee
Honorable Ron Wyden, Ranking Member, Senate Committee on Finance
Honorable Gary C. Peters, Ranking Member, Senate Homeland Security and
Governmental Affairs Committee
Honorable Richard Neal, Chairman, House Committee on Ways and Means
Honorable Bennie Thompson, Chairman, House Committee on Homeland Security
Honorable Kevin Brady, Ranking Member, House Committee on Ways and Means
Honorable Mike Rogers, Ranking Member, House Committee on Homeland Security
Honorable Earl Blumenauer, Chairman, Subcommittee on Trade, House
Committee on Ways and Means
Honorable Vern Buchanan, Ranking Member, Subcommittee on Trade, House
Committee on Ways and Means

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About the NFTC
Serving America’s Global Businesses Since 1914– The National Foreign Trade Council (www.nftc.org) is a leading business organization advocating an open, rules- based global trading system. Founded in 1914 by a broad-based group of American companies, the NFTC now serves hundreds of member companies through its offices in Washington and New York.
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