FLORHAM PARK, N.J., Oct. 31 /PRNewswire-USNewswire/ -- Financial
Executives International (FEI), the preeminent association for financial
executives, today issued a response to House Ways & Means Committee
Chairman Charles Rangel's (D-NY) "Tax Reduction and Reform Act of 2007," a
comprehensive tax reform package introduced on October 25, 2007 that would
greatly affect both individual and corporate taxpayers. Most significantly,
the bill proposes repealing the individual alternative minimum tax (AMT)
and lowering the top marginal corporate income tax rate from 35 percent to
30.5 percent. The bill includes a number of "revenue offsets" designed to
pay for the costs of AMT repeal and corporate rate reduction. FEI's
Committee on Taxation (COT) will be taking a close look at all aspects of
the proposal over the coming months, and will seek a meeting with Chairman
Rangel and his staff to articulate its views.
"FEI applauds Chairman Rangel for recognizing the importance of making
the U.S. income tax system more competitive in the world economy," said FEI
President and CEO Michael P. Cangemi. "We also support his efforts to
reduce U.S. corporate tax rates, which are currently higher than those of
all other major industrialized countries except for Japan. We are
concerned, however, about the impact some of the revenue offsets in this
bill could have on the global competitiveness of U.S. companies."
One such provision would require U.S. companies (but not their foreign
competitors) to defer deductions for U.S.-based research & development and
other expenses associated with income earned through controlled foreign
corporations. A second provision would repeal recently-enacted, worldwide
interest-allocation rules. "Competitiveness is the name of the game in the
world economy, and all aspects of corporate tax reform should put U.S.
companies on a level playing field with their foreign competitors," added
Cangemi.
FEI will be examining all of the revenue offsets in the bill, including
proposals to repeal the last-in, first-out (LIFO) accounting method;
terminate the domestic international sales corporation (IC-DISC) provisions
for smaller businesses; codify the economic substance doctrine; and impose
payroll taxes on S-corporation service companies.
"We look forward to working with Chairman Rangel and his staff to
ensure that corporate tax reform initiatives not only enhance the global
competitiveness of U.S. companies, but also encourage both technological
innovation and business investment," said Cangemi.
About Financial Executives International (FEI)
Financial Executives International is the leading advocate for the
views of corporate financial management. Its 15,000 members hold
policy-making positions as chief financial officers, treasurers and
controllers at companies from every major industry. FEI enhances member
professional development through peer networking, career management
services, conferences, teleconferences and publications. Members
participate in the activities of 85 chapters, 74 in the U.S. and 11 in
Canada. FEI is headquartered in Florham Park, NJ, with additional offices
in Washington, DC, and Toronto. Visit http://www.financialexecutives.org for more
information.
SOURCE Financial Executives International
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Related links:
http://www.financialexecutives.org
CONTACT:
Media, Nicole Madison, FD, +1-212-850-5647,
or nicole.madison@fd.com, for Financial Executives International
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