Washington – Business Roundtable President John Engler praised Chairman Dave Camp’s corporate tax reform discussion draft in written testimony provided this week to the House Committee on Ways and Means, Subcommittee on Select Revenue Measures. In his testimony, Engler stated:

“Business Roundtable commends Chairman Camp for his leadership in putting forth a detailed corporate tax reform proposal to address many of the deficiencies of the current tax system in order to provide for a stronger domestic economy with increased investment, increased employment, and growing wages. The proposal provides the essential components to a reformed corporate tax system, including a commitment to a significantly lower statutory rate and a territorial tax system.”

“Today, the U.S. corporate tax system hinders the ability of U.S. companies to grow and compete in the world economy with the consequence of less investment in the United States and a more slowly growing economy with fewer job opportunities for American workers.”

BRT addressed the following issues in the testimony:

• 25% Statutory Corporate Tax Rate
• Establishing a 95% Dividend Exemption ("Territorial") System
• Anti-Base Erosion Provisions
• Certain Active Business Income Remaining Subject to Anti-Deferral Rules
• Interest Deduction Denial
• Transition Tax on Pre-Enactment Earnings and Tax on Previously Taxed Income

The international discussion draft represents the first step in a process of comprehensive reform being undertaken by the Ways and Means Committee.  Engler cautioned that the international area is complex and that the proposal will require continued close examination and further dialogue to ensure a competitive territorial tax system in the U.S.  “We look forward to working with Chairman Camp in reviewing and refining the options presented in this thoughtful first discussion draft,” Engler concluded.