ACC Applauds House Passage of Tax Reform Legislation
WASHINGTON (November 16, 2017) – The American Chemistry Council (ACC) issued the following statement upon passage of the Tax Cuts and Jobs Act (H.R. 1) by the U.S. House of Representatives.
“We commend Speaker Ryan, Chairman Brady and House members for achieving this historic milestone in the effort to modernize our nation’s tax code. We strongly urge enactment in the 115th Congress of a fair, simpler and internationally competitive system that promotes U.S. economic growth and new jobs.
“Chemistry provides 811,000 skilled American jobs and accounts for 14 percent of the nation’s exports. Over a quarter of U.S. GDP is generated from industries that rely on chemistry, from agriculture and electronics to textiles, vehicles, and energy-efficient materials used in building and construction. Thanks to the development of domestic shale gas – a key source of energy and feedstock for chemical manufacturing – we are expanding and hiring in the United States.
“Business tax reform needs to recognize the importance of American manufacturing and the jobs it creates. We support a substantial rate reduction to reflect rates at least comparable to OECD averages, a competitive territorial system and transition rules that avoid financial dislocation, contraction or reduction in jobs. Reform must produce a more level playing field for U.S. and foreign companies when they invest at home or abroad.
“Lawmakers must enact a reasonable, bifurcated rate for deemed repatriation of historical foreign earnings – one with a substantially lower rate for earnings reinvested in plants and equipment than for cash/cash equivalents. We support permanent reform in order to drive sustained economic growth in the 21st century.
“Policymakers have a once-in-a-generation opportunity to enact comprehensive tax reform. The decisions Congress makes will be critical to ensuring a strong and competitive U.S. chemical industry and manufacturing sector for the long term. We look forward to Senate action and to being a resource as lawmakers develop and enact reform.”