Greg Jenner Speaks On Need For Reform Of US Tax System

by Mike Godfrey, Tax-News.com, Washington

23 April 2004

Speaking at the Tax Council's Legislative Luncheon on Wednesday, Acting Assistant Secretary for Tax Policy, Greg Jenner stressed the need to reform the international provisions of the United States tax code.

After outlining significant changes made by the Internal Revenue Service and the Treasury in recent months, such as the proposal of new regulations on transfer pricing for services transactions, Mr Jenner went on to announce that:

"We were very pleased that Congress approved our new tax treaty with Japan. The new treaty will significantly reduce existing tax barriers to trade and investment between the United States and Japan. It will foster even closer economic ties between our two countries, enhancing the competitiveness of our businesses and creating new opportunities in the combined markets of the two countries. A healthy trade and investment relationship between the United States and Japan, the world’s two largest economies, is critical to creating economic growth throughout the world."

"The new Japanese treaty follows closely the ratification of changes to our treaties with the United Kingdom and Mexico – changes that like those in the Japanese treaty reduce tax barriers to trade and investment."

Speaking with regard to the significance of the Jobs and Growth Act to the country's global competitiveness in tax matters, the Acting Assistant Secretary observed that "the dividend changes addressed a way in which the US tax system differed from those of our major trading partners around the world".

Finally, following a discussion of the international issues which have arisen in connection with the US manufacturing sector, in particular the recent trade disputes with China and the European Union, Mr Jenner concluded his speech by observing that:

"Reforming our international tax rules is about enhancing the ability of US businesses and American workers to compete and prosper in today's global economy. It is about ensuring that we make the most of the tremendous opportunities that globalization and technological advances provide. If we do not, we can be sure that our neighbours both near and far will."

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