FEI Congratulates Chairman Camp on Advancing the Tax Reform Agenda

MORRISTOWN, N.J., Feb. 27, 2014 /PRNewswire/ -- Financial Executives International (FEI) congratulates U.S. House Ways and Means Chairman Dave Camp (R-Mich.) on the release of his tax reform proposal, "The Tax Reform Act of 2014."  Over the last several years, FEI has been at the forefront on the issue of tax reform and has sought a comprehensive and fair solution that protects both public and private U.S. companies. FEI appreciates Chairman Camp's efforts to further the dialogue on how to overhaul our outdated and complex system of taxation.   The introduction of his proposal begins a discussion that will strengthen the U.S. economy in the years ahead.

"As an association that represents senior financial executives from both multinational corporations as well as privately held and family-owned businesses, it is vital to the interests of our membership that a comprehensive solution to tax reform takes into account differences in size, structure, and industry," said Marie Hollein, President and CEO of Financial Executives International.  "Now is not the time to pick winners and losers.  It is the time to come together in the name of global competitiveness and the strengthening of America's economic backbone."

The U.S. has the highest statutory corporate income tax rate among its major trading partners. High corporate tax rates act as a disincentive for both domestic capital investment and inbound foreign direct investment. High U.S. corporate income tax rates applied to the worldwide profits of U.S. multinationals place those companies at a tax disadvantage compared to businesses based in countries that have both a lower corporate tax rate and a tax exemption for repatriated foreign earnings. A goal of tax reform should be to produce a tax code that is neutral among all industries and types of income, and provides for consistent treatment of taxpayers engaged in the same or similar activities.

Tax reform must also strengthen and make permanent the research and development (R&D) credit, which expired at the end of 2013 for the 16^th time since it was enacted in 1981. In addition to the uncertainty of the on-again, off-again credit, other countries are moving ahead of the U.S. by offering stronger innovation tax incentives to attract R&D. In 2009, the U.S. rated 24^th out of 38 industrialized countries in the strength of its R&D tax incentives.

The solution to tax reform must be a comprehensive one.  A majority of businesses in the U.S. are privately held and family-owned.  In order to achieve success and fairness in tax reform, the solution must lower both the corporate and individual rates concurrently.    

FEI appreciates Chairman Camp's continued commitment to designing a comprehensive solution to tax reform that is fair and competitive for all who use it.  FEI looks forward to working alongside Chairman Camp and Senate Finance Committee Chairman Ron Wyden (D-Ore.) as tax reform advances on Capitol Hill.  

About FEI
Financial Executives International is the leading advocate for the views of corporate financial management. Its 15,000 members hold policy-making positions as chief financial officers, treasurers and controllers at companies from every major industry. FEI enhances member professional development through peer networking, career management services, conferences, teleconferences and publications. Members participate in the activities of 86 chapters, 74 in the U.S., 11 in Canada and 1 in Japan. FEI is headquartered in Morristown, N.J., with additional offices in Washington, D.C., and Toronto. Visit www.financialexecutives.org for more information.

SOURCE Financial Executives International (FEI)