Business Roundtable strongly urges that Congress immediately pass legislation providing for an extension of business tax provisions that expire at the end of this year.

Business Roundtable CEOs are firmly dedicated to business tax reform that includes substantially lower corporate tax rates and a competitive territorial system similar to the rest of the world as the core priority for tax legislation.  However, until policymakers complete their work on tax reform, Congress should give continued support to longstanding business tax provisions that sunset at the end of the year and provide an extension of temporary 100 percent "bonus" depreciation intended to increase U.S. investment to promote the economic recovery and increase private sector employment.  We commend H.R. 3630 -- The Middle Class Tax Relief and Job Creation Act of 2011 -- for its inclusion of the temporary 100 percent “bonus” depreciation extension.

With Japan having enacted legislation reducing its corporate tax rate effective April 1, 2012, the United States will soon have the highest combined federal and state statutory corporate tax rate among the 34 countries in the Organization for Economic Cooperation and Development.  Tax reform substantially reducing the statutory tax rate and providing for a competitive territorial tax system is essential to encouraging investment in the United States by both U.S.-based and foreign companies and for improving the competitiveness of American companies in foreign markets.  Tax reform is vital to improving U.S. economic growth and increasing domestic employment both in the near term and in the future.

Just a few days remain before the expiration of several longstanding business tax provisions, including the research credit and important international provisions -- specifically, active financing income and "look through" rules.  It is important for Congress, at a minimum, to renew these provisions to avoid imposing a tax increase on American firms at the end of this year which would only further exacerbate the tax disadvantages they already face in the global marketplace today and the coincidental deleterious effects on business expansion and job growth.

Business Roundtable urges Congress to extend these provisions now to avoid any lapse and we continue to offer our assistance on corporate tax reform.

Sincerely,

John Engler

JE/dr

This letter was also sent to Minority Leader McConnell, Majority Whip McCarthy, Minority Whip Kyl, Chairman Camp, Majority Leader Cantor and Senator Hatch.