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Jennifer Scott
(202) 249-6512

Policy Background

Many chemistry companies operate in multiple countries and make decisions every day about where to site facilities and grow their businesses. Before tax reform took effect earlier this year, federal tax policy had punished U.S. manufacturers by taxing income from earnings abroad—after those earning already have been taxed by the host country. This double taxation had put U.S. companies at a competitive disadvantage. 

ACC’s Policy Position

ACC strongly supported comprehensive tax reform as a way to promote domestic investment, new jobs and U.S. competitiveness. We sought tax reform that would: 

  • 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.

We congratulate Congressional leaders for bringing tax reform across the finish line. After decades enduring an outdated tax code that made U.S. businesses less competitive, our nation now has a modernized tax structure that promotes sustained American economic growth and new jobs.