February 9, 2012
Enzi legislation levels playing field for U.S. companies
Fifty-year-old tax laws would no longer disadvantage American-based companies if Congress passes a bill introduced today by U.S. Senator Mike Enzi, R-Wyo.
Enzi’s predecessor in the Senate and co-chairman of the National Commission on Fiscal
Responsibility and Reform, Al Simpson, commended Enzi for working on this important part of the commission’s plan.
The United States Job Creation and International Tax Reform Act of 2012 would allow U.S.-based company earnings currently sitting offshore to be brought back to America at a reduced tax rate; provide an exemption from U.S. tax for foreign earnings already subject to taxes in a foreign country; and reduce the U.S. tax burden on certain income derived from ideas and inventions.
“This bill would modernize the United States tax code, giving U.S. companies
incentives to create jobs and invest back in the United States,” Enzi said. “American companies would be competing on a level playing field with their foreign counterparts under this bill.”
Updating this part of the U.S. tax code was a recommendation of the Simpson-Bowles debt commission.
“Reforming our tax code was a key provision of the fiscal commission and I’m so pleased to see Senator Enzi driving this point home. If we let our tax laws restrain American businesses, our economy will be the punching bag of the rest of the world,”
Enzi, who is an accountant and member of both the Senate Finance Committee and
Senate Budget Committee, acknowledged that some will argue these lower tax rates will take money out of federal coffers.
“The opposite is true. The current tax structure acts as a great wall, keeping money
outside of U.S. borders. The new tax structure creates a breach, the good kind, that allows money to flow back in. This increase in capital not only will mean more jobs and a more stable U.S. economy, it will mean more tax revenue for our indebted federal government,” Enzi said.
For the legislative text of the United States Job Creation and International Tax Reform Act of 2012, click here.
For a one-page summary of the bill, click here.
For a detailed technical explanation of the proposed tax changes, click here.
For the text of an Feb.9 Enzi Senate floor speech as prepared for delivery, click