WASHINGTON: A group of 16 powerful CEOs in the US today called for an overhaul of the corporate tax code and asked lawmakers to accept the controversial proposal that would reduce cost of exports but heavily penalise imports.
In a letter to the Congressional leadership of both the Republican and Democratic parties, the executives from companies like Boeing, General Electric, Oracle and Pfizer supported the comprehensive tax reform, which would end the 'Made in America' tax on domestic production.
This would make the US tax code competitive in the global economy.
In their letter released to the press today, the group said the border adjustment tax is a "critical element" of the House's "Better Way" tax reform blueprint.
They argued that it is "consistent with the tax policies of nearly every other country in the world".
"The status quo hurts American companies – large and small – and their employees," the CEOs said. They recommended "enacting comprehensive pro-growth tax reform to remove a major impediment to economic growth – our outdated tax code", the letter said.
"Incremental tweaks will not level the playing field for American workers or dramatically reinvigorate economic growth. If we miss this chance to fundamentally reshape the tax code, it might take another 30 years before we have another chance to try," the CEOs said, supporting the GOP tax reform.
"This reform is consistent with the tax policies of nearly every other country in the world, and it would effectively end the 'Made in America' tax that creates an unfair advantage for foreign-based companies at the expense of US jobs and economic growth," the letter said.
The proposed changes they wrote "will free up much-needed capital for companies to invest here in the US, help stop corporate inversions and acquisitions of US companies, and protect American jobs from unfair foreign competition."