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.”
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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