Thomas Lambasts US Firms For Obstructing New International Tax Bill

by Leroy Baker, Tax-News.com, New York

24 March 2004

House Ways and Means Committee Chairman Bill Thomas (R–Calif) on Monday accused corporate America of standing in the way of a major international taxation bill that will repeal the Extra Territorial Income Exclusion Act.

In an address to the Tax Executives Institute 54th Midyear Conference, Thomas was scathing about the attitudes of certain firms and lobby groups, which he suggested are seeking to preserve the status quo in order to benefit their own interests.

"This most significant package of international tax reforms in 40 years is probably going to fall by the wayside," he remarked.

"The question is, are you going to continue at this conference to lament through seminars and discussions the horrendous condition of the international tax code?" Thomas asked the delegates. He went on to add that if attitudes did not change, the business community was about to "watch us lose an opportunity, both in the House and the Senate” to pass major international tax law changes this week that will avert prolonged EU tariffs on US exports.

Thomas singled out US corporate giants Microsoft, Boeing and Caterpillar as particular culprits in obstructing the path of new tax legislation. "I'm very serious. You snicker, you can laugh, you can feel uncomfortable," he continued. "But not nearly as uncomfortable as you will be when the opportunity for changing provisions that are 40 years out of date will pass us by."

When asked by reporters following the speech why he had identified these particular firms, Thomas explained that: "I asked the audience if they had any idea who it was who seemed to be strongly opposed. They volunteered the names, I didn't."

A Boeing spokeswoman later responded that “we will continue to work with members of the House to improve his bill to continue to protect US jobs," according to a Wall Street Journal report.

Similarly, Caterpillar’s governmental affairs manager, Doug Crew announced in a statement that the firm "continues to support improvements" to the tax legislation.

Recommended