New tax will hurt businesses
Published 10:02 pm Monday, July 6, 2009
In the midst of tackling a wide range of domestic issues, policy makers in our nation’s capital agree that repairing our economy and preserving jobs are chief priorities.
Given this rare consensus, you would think any new legislative proposals would aim to strengthen our competitiveness and safeguard the well-paying American jobs that remain intact.
Instead, Congress is considering a new policy that would create colossal tax increases and upheaval for worldwide American companies. We cannot allow this dangerous policy to take hold — for the good of our businesses, jobs and the overall economy.
Adopting oppressive tax policies now is the worst possible scenario for U.S. businesses already struggling to stay afloat in an economically tumultuous and viciously competitive global environment.
Hundreds of billions of dollars in proposed tax hikes on American companies with overseas operations will only place U.S. companies on an inferior footing, costing company profits and throwing jobs into jeopardy.
In no way is this move consistent with our national goal to strengthen U.S. competitiveness and stop the massive job losses that are shaking the very foundation of our economy.
In Alabama, these tax hikes will take a toll on businesses that are crucial economic engines of our communities.
Companies such as Boeing and AT&T that do business in our state and make Alabama home to jobs and have a strong impact on our economy will be hurt by this legislation.
As a state representative, I am highly concerned that an additional tax burden will not only compromise these companies’ ability to sustain successful overseas operations, but also stunt new business development that could trigger U.S. job growth.
Why is this tax increase so alarming? In part, because American businesses already pay the second-highest corporate tax rate in the world.
The proposed changes would egregiously punish U.S. businesses that abide by the tax code that was designed with some allowances to keep America competitive abroad.
To enact this tax policy is to gamble away U.S. company revenue and good-paying jobs that are a direct result of legal, fruitful overseas business operations. American businesses and jobs are at stake. This policy would give foreign companies an unfair advantage that would destabilize U.S. businesses’ ability to compete head to head.
U.S. companies deserve a level playing field that gives them a fair shot at business success, and brings back these benefits to American communities here in Alabama and beyond.
I strongly urge Alabama’s members of Congress to eliminate this proposal, before it eliminates jobs and damages businesses’ bottom lines.