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New Treasury Proposal on Inversions: A Band-Aid Solution to Outdated, Uncompetitive U.S. Business Tax System

Washington – Business Roundtable President John Engler issued the following statement today in response to the U.S. Treasury Department’s proposed regulations to limit so-called “tax inversion” transactions:

“Tax inversions are a symptom of a U.S. corporate tax system that is outdated, uncompetitive and puts American companies and workers at a disadvantage with the rest of the world. Unfortunately, the regulations proposed by the Treasury Department yesterday amount to a Band-Aid solution that will only make matters worse.

“Secretary Lew himself has said that the best way to address tax inversions is by enacting business tax reform. But Treasury’s proposal goes in the opposite direction and does nothing to attract new businesses and investment to United States.

“It is long past time for Congress and the Administration to modernize the U.S. business tax system and encourage investment in this country.”

Business Roundtable this year released an agenda outlining policies to support American jobs and economic growth. Tax reform that accelerates U.S. business investment and makes American companies more competitive in world markets will boost economic growth and job creation here at home.