The Indiana Chamber of Commerce is asking federal legislators to oppose the recent proposal to increase taxes on overseas profits. U.S. companies, including many in Indiana, will find it increasingly difficult to compete with their foreign competitors should these tax code changes be enacted.
American companies already pay the second-highest corporate tax rate in the world. During these difficult economic times, we believe economic development should be promoted to give our companies the tools they need to succeed in the global marketplace instead of burdening them with higher taxes. These tax proposals would add $200 billion to the tax burden of affected companies, putting them at a competitive disadvantage with their foreign counterparts who don’t have to pay or can defer taxes in their home countries.
Overseas investments by domestic companies strengthen our overall economy. By adding overseas operations, U.S. companies create more opportunities for American companies to grow back home. For every worker employed overseas by U.S. companies, 2.3 workers are employed in the U.S.