WASHINGTON (December 4, 2017) – The American Chemistry Council (ACC) issued the following statement regarding passage of the Tax Cuts and Jobs Act (H.R. 1) by the U.S. Senate.
“We applaud Majority Leader McConnell, Chairman Hatch and members of the Senate for bringing our nation another step closer to a modernized tax code. We strongly urge enactment this year of a fair, simpler and internationally competitive system that promotes economic growth in the United States.
“We’ll continue to be a resource as Congress draws closer to completing the process and we look forward to reviewing proposals for how they treat issues of particular concern to our industry – the corporate tax rate, various provisions affecting interest deductibility, rates applicable to repatriated earnings, effective dates, and transition rules. We’ll assess the final bill using our guiding principles for tax reform as the yardstick.
“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.
“We believe business tax reform must 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 are on the cusp of 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.”