Press Releases and Statements Archives - Page 3 of 100

NFTC Report Shows Economic Effects of Onerous FASB Provisions

Posted on September 25, 2023October 2, 2023 by Veronica Berkshire

WASHINGTON DC – A report published by the National Foreign Trade Council (NFTC) today showed the negative economic effects of the Financial Accounting Standards Board’s (FASB) Improvements to Income Tax Disclosures on the U.S. economy.

The report indicated that companies may experience cost increases in impacted business functions as high as 62% and averaging 9.9%.

“As the report itself states, the increased costs lead to higher prices, lower demand and lower employment,” said Anne Gordon, Vice President for International Tax Policy at NFTC. “The effects also go beyond that – at a time of economic recovery, these rules may decrease corporate investment which could lead to a decrease in GDP or about $12 billion in 2022 terms. Considering these effects, we’d urge FASB not to move forward with this harmful proposal.”

Other findings in the report include:

Lower employment and wage growth;
Reduction of 27,000 full-time equivalent jobs, in year one alone;
Impacts on economy-wide wage and salary income amounting to the cost-equivalent of the loss of 609,000 average-wage jobs cumulatively by 2040;
Slower economic growth;
Decrease in investment; and
Create competitive disadvantages for companies required to report.

Download the full report here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Welcomes Movement on Taiwan Tax Act

Posted on September 14, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon issued the following statement following Senate Finance Committee passage of the U.S.-Taiwan Expedited Double Tax Relief Act:

“We were happy to see unanimous approval of the U.S.-Taiwan Expedited Double Tax Relief Act in the Senate Finance Committee and welcome their commitment to working alongside the Senate Foreign Relations Committee on continuing forward momentum on this important issue.

“Bipartisan and unanimous consent of this Act shows continued appetite on the part of the Hill to ensure American companies have a fair shot at competing in international markets, and we look forward to learning further details as the bill continues to move through the appropriate process.”

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NFTC Submits Comments for OECD Pillar One – Amount B Consultation

Posted on September 5, 2023September 6, 2023 by Veronica Berkshire

WASHINGTON DC – The National Foreign Trade Council (NFTC) last week submitted comments as part of the OECD’s public consultation on Pillar One – Amount B.

In the comments, the NFTC reiterated its support for the objectives of Amount B “namely simplifying and streamlining the pricing of marketing and distribution activities in market jurisdictions.”

“The NFTC appreciates that the OECD continues to give the business community the opportunity to comment on the Inclusive Framework process as it develops,” said Anne Gordon, NFTC Vice President for International Tax Policy. “We have been active participants in this process all along and urge the OECD to continue to take into account the business community before finalizing any aspect of this process.”

The letter outlines specific comments in the following areas:

Scoping (Section 2.2);
Services (Section 2.3.4);
Non-distribution activities (Section 2.3.5);
Pricing Matrix (Section 4.1);
Geographic Differences (Section 4.2);
Corroborative mechanism (Section 4.3);
Transitional Rules (Section 6); and
Tax Certainty (Section 7).

The full comments can be found here.

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Leading Industry Associations Express Concern with India’s ICT Import License Requirement

Posted on August 16, 2023August 16, 2023 by Veronica Berkshire

WASHINGTON DC – The National Foreign Trade Council (NFTC) and partner trade associations today sent a letter to Secretary of Commerce Gina Raimondo and United States Trade Representative (USTR) Katherine Tai urging the U.S. government to oppose a new import licensing requirement for computers and other information and communication technology (ICT) products beginning November 1, 2023, which could significantly disrupt access to India’s important ICT market.

“Import licenses harm consumers, corporations, and entire economies when they are used as a protectionist tool,” said John Pickel, NFTC’s Senior Director for International Supply Chain Policy. “This regime represents a violation of India’s international commitments, harms U.S. companies, and is a setback for U.S. investment in manufacturing that creates jobs in India.”

The letter reads, in part: “This policy – announced with no prior notice or public consultation – could significantly disrupt trade, hamper efforts to more closely integrate India into global supply chains, and harm businesses and consumers in both countries.”

The letter goes on to cite several specific concerns with the import licensing requirement, including that, among others, it:

Calls into question the reliability of India as a trade partner by violating WTO commitments;
Degrades the resiliency of supply chains and harms manufacturing in India — including investments by U.S. companies; and
Risks creating scarcity and price increases for Indian citizens, businesses, and students and imposes a considerable risk to U.S companies’ significant investment in India.

The letter was also signed by the Consumer Technology Association, the Information Technology Industry Council, the National Association of Manufacturers, the Retail Industry Leaders Association, the Semiconductor Industry Association, the Technology Trade Regulation Alliance and the United States Council for International Business.

The full letter is available here.

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TRC Welcomes Renewed Efforts to Reform Section 232

Posted on August 11, 2023August 15, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement on behalf of the Tariff Reform Coalition (TRC) following the introduction in the House of legislation to reform Section 232 of the Trade Expansion Act of 1962:

“The Tariff Reform Coalition welcomes the bipartisan introduction of the Congressional Trade Authority Act by Rep. Gallagher and Rep. Beyer. The last five years have demonstrated the need for fundamental reform of the authority granted to the President under Section 232. This legislation makes several important changes to Section 232, including making the Secretary of Defense responsible for the investigations into the effect of imports on U.S. national security.

“Importantly, it also creates much needed predictability for U.S. businesses by ensuring that exclusions are available to all importers of a given product, setting a maximum three-year window for 232 duties to be in place, and transferring the process of reviewing and granting exclusion requests to the International Trade Commission in conjunction with new guidelines to provide greater transparency to those seeking exclusions.

“We applaud Representatives Gallagher’s and Beyer’s leadership in spearheading this commonsense update to Section 232 of the Trade Expansion Act of 1962 and we urge Congress to pass this important legislation.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Statement on Executive Order on Outbound Investment

Posted on August 9, 2023 by Veronica Berkshire

WASHINGTON DC – NFTC Vice President for National Security Policy Jeannette Chu released the statement following the publication by President Biden of an Executive Order on outbound investment:

“This Executive Order on outbound investment restrictions comes after many months of anticipation, which reflects the complicated issues at play. Protecting our national security interests, including competitiveness, and preventing access to sensitive and militarily-relevant technologies and products requires thoughtful policy approaches across agencies.

“We look forward to an orderly and transparent rulemaking process that will build on existing regulations and include robust consultation across stakeholders. As an association representing American companies across all sectors of the U.S. economy, NFTC stands ready to help inform this process.”

Jeannette Chu is available for media inquiries on this issue. She can be reached by contacting Veronica Berkshire (vberkshire@nftc.org).

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Canada DST Proposal is Shortsighted; Will Harm International Tax Negotiations

Posted on August 4, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following the publication of Canada’s proposed Digital Services Tax (DST):

“We are acutely disappointed with Canada’s decision today to move forward with their plans to impose a DST and their refusal to join the close-to-unanimous Pillar One DST moratorium announced by the OECD Inclusive Framework (IF) members last month.

“The text published today shows that Canada’s DST is clearly discriminatory towards U.S. companies and will harm international efforts to come to a global consensus on issues of taxation in the digital economy. The retroactive application of the measure is also extremely troubling.

“This move is shortsighted. By endangering the international process, it also increases the likelihood that other countries will implement their own unilateral measures, therefore creating a web of discriminatory, country-specific DSTs that will hinder the ability of our companies to do business abroad.

“We urge Canada to reconsider implementation of the DST and to continue actively engaging on Pillar One before moving forward with any unilateral measures.”

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NFTC: Business Community Welcomes Updated UFLPA Strategy

Posted on August 2, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Senior Director for International Supply Chain Policy John Pickel today issued a statement following the publication of the updated Uyghur Forced Labor Prevention Act (UFLPA) Strategy and entity list additions by the interagency Forced Labor Enforcement Task Force (FLETF):

“The UFLPA strategy updates and additions to the UFLPA entity list published today are welcome visibility for private industry seeking to advance the shared goal of mitigating forced labor in resilient supply chains.

“NFTC and its member companies look forward to working with the FLETF agencies to address root causes of forced labor and addressing risk earlier in supply chains before cargo arrives at U.S. ports.”

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NFTC VP Outlines Concerns with OECD Tax Process During Congressional Hearing

Posted on July 19, 2023July 20, 2023 by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today testified at a House Committee on Ways & Means Subcommittee hearing on the OECD’s international tax negotiations.

During her testimony, Anne stressed the importance of tax certainty in the international tax system for U.S. companies.

“While we support the OECD’s process and have participated in every step of the way, we believe that more needs to be done to ensure that the business community’s voice is being heard as countries negotiate the two pillars,” said Gordon. ‘We welcome increased involvement from the Congress to ensure the best possible outcome in these negotiations and look forward to staying engaged as the process in Paris continues.”

The testimony outlined the impact on the U.S. business community and priorities as the process continues to evolve:

Prioritizing tax certainty for U.S. companies and allowing them to be competitive around the world;
Increasing business community participation and the need for additional in consultations before the rules are implemented;
Assuring cohesive and consistent adoption of the rules across all countries;
Fighting for the acceptance of domestic U.S. tax credits;
Ensuring the protection of sensitive tax information; and
Implementing a dispute resolution process.

The hearing, titled ‘Biden’s Global Tax Surrender Harms American Workers and Our Economy,’ included testimony from experts split into two panels: the first with Michael Plowgian, Deputy Assistant Secretary for International Tax Affairs, Department of Treasury and the second with Mindy Herzfeld, Professor of Tax Practice, University of Florida Levin College of Law; Adam Michel, Director of Tax Policy Studies, CATO Institute; David Schizer, Dean Emeritus and Harvey R. Miller Professor of Law and Economics, Columbia Law School; and Peter Barnes, International Tax Advisor and Of Counsel, Caplin & Drysdale.

A full copy of Anne’s testimony as prepared can be found here. A live stream and recording of the hearing is available here.

NFTC Launches De Minimis Tax Exemption Fact Center

Posted on July 14, 2023 by Veronica Berkshire

Washington, D.C. – The National Foreign Trade Council has launched a De Minimis Tax Exemption Fact Center to inform policymakers and press of the benefits of this tax break to the American economy. Conversely, passage of pending legislation to degrade the current de minimis threshold would levy a regressive tax increase on underserved populations.

The de minimis tax exemption permits shipments valued under $800 (per person, per day) to enter the U.S. free of duty and taxes. These shipments are subject to U.S. laws and information requirements that promote effective enforcement at the border. Congress reaffirmed and expanded this long-standing tax exemption on a bipartisan basis in 2016, noting the significant economic benefits.

“Congress passed and expanded the de minimis tax exemption for a reason:. De minimis is a tax cut that reduces costs for consumers and promotes economic security. It reduces the effects of inflation on U.S. businesses, helps to alleviate port congestion, and enables customs authorities to better focus resources,” said John Pickel, NFTC Senior Director for Supply Chain Policy. “As Congress considers policy proposals, we want to make sure the drastic cost reductions, supply chain benefits, and facts about enforcement capabilities are front and center. We also want Congress to understand that there are clear ways to enhance the implementation of de minimis without hurting the businesses and consumers who benefit from it.”

The new NFTC De Minimis Tax Exemption Fact Center includes:

A web page that highlights the benefits of the tax exemption to small businesses, consumers, underserved communities, CBP enforcement efforts, and the ongoing fight against inflation and supply chain slowdowns.
A fact sheet that includes information on the benefits of de minimis, a fact-check on the detailed information that CBP requires on de minimis shipments, and suggestions for Congress on how de minimis can be further improved.
Links to Congressional testimony on the small business, consumer, and supply chain benefits of the de minims tax exemption.
Infographics that illustrate the increased fees packages would accrue if de minimis were curtailed or eliminated and the significant information CBP requires on de minimis shipments.

The Fact Center will be updated with additional information regularly.

In addition, John Pickel the Senior Director of International Supply Chain Policy at the National Foreign Trade Council is available for media inquiries on de minimis and other supply chain policy issues. He can be reached by contacting Veronica Berkshire at vbershire@nftc.org.

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