Washington, DC – Today, the National Foreign Trade Council (NFTC) joined with other leading business organizations in sending a letter to every U.S. Senator expressing support and calling for action on the bilateral income tax treaties and protocols currently pending before the Senate. Adoption of these tax treaties will ensure U.S. competitiveness abroad and foreign direct investment into the United States. The tax treaties are critical to the U.S. business community, as evidenced by the signatories on the letter who represent companies that employ millions of Americans.
In the letter, the groups wrote:
“The bilateral income tax treaties and protocols pending before the Senate are important to U.S. economic growth and U.S. trade and tax policy. We ask for your support for these treaties and protocols and also ask for expeditious action on them by the United States Senate.
“…For over eighty years, income tax treaties have played a critical role in fostering U.S. bilateral trade and investment while protecting U.S. businesses, large and small, from double taxation of the income they earn from selling goods and services in foreign markets. Tax treaties do so primarily by reducing foreign withholding taxes and otherwise restricting the ability of the foreign treaty partner to tax the income of U.S. taxpayers. On a reciprocal basis, tax treaties reduce U.S. withholding taxes to encourage foreign companies to invest in the United States. Where both countries have the right to tax an item of income under the treaty, the treaty seeks to avoid double taxation by requiring one of the countries to allow a credit for the other country’s tax (or to exempt the income from its own tax). Tax treaties help the U.S. economy by allowing U.S. companies to more efficiently conduct their businesses abroad and by making the United States more hospitable to foreign investment, which creates and sustains millions of American jobs.
“In addition, tax treaties contain administrative procedures for U.S. taxpayers, treaty-partner taxpayers, and the U.S. and foreign taxing authorities themselves to resolve disagreements and to assist in the enforcement of the two countries’ tax laws. In these and other ways, the U.S. network of over sixty bilateral income tax treaties plays a significant role in advancing the economic interests of the United States in the global economy.
“…We encourage prompt consideration and approval of these pending tax treaties and protocols by the United States Senate.”
In addition to the NFTC, the following organization signed the letter: American Chemistry Council, BSA/The Software Alliance, Business Roundtable, Financial Executives International, Information Technology Industry Council, National Association of Manufacturers, Organization for International Investment, Semiconductor Industry Association, Software Finance & Tax Executives Council, Trans-Atlantic Business Council, U.S. Chamber of Commerce and United States Council for International Business.
Click here to read the full letter.
About the NFTC
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org -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.Follow us on:
NFTC is Celebrating our New Century in 2014! Details at www.nftc.org -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.Follow us on:
