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Jennifer Scott
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Federal tax policy must reduce corporate tax rates, end double taxation and encourage research and development so U.S. chemistry industry companies can innovate, create jobs and compete globally.

Policy Background

Many chemistry companies operate in multiple countries and make decisions every day about where to site facilities and grow their businesses. Existing tax policy punishes U.S. manufacturers by taxing income from earnings abroad—after those earning already have been taxed by the host country. This double taxation puts U.S. companies at a competitive disadvantage. 

ACC’s Policy Position

ACC supports comprehensive tax reform that promotes domestic investment, new jobs and U.S. competitiveness. Tax reform should: 

  • Recognize and reflect the important role of American manufacturing and the jobs it creates.
  • Include a competitive territorial system for the taxation of income earned outside the U.S.
  • Include a substantial income tax rate reduction to reflect rates at least comparable to OECD averages.
  • Produce a “level playing field” such that U.S. companies investing abroad can compete equally with foreign investors, and U.S. and foreign companies investing in the U.S. are treated equally.
  • Be comprehensive and include transitional rules that allow taxpayers to adjust to a new tax regime without financial dislocation, contraction or reduction in jobs.