Fairer Treatment for American Job Creators, More Enticement for Foreign Investors
‘Speaking of economic growth and development, the Senate will soon turn our attention to a number of bilateral tax treaties with important U.S. trading partners. We have these kinds of agreements in place to reduce tax evasion, tax avoidance, and unfair double taxation of U.S. citizens and businesses who also conduct business abroad. The four that we’ll consider this week are agreements with Spain, Switzerland, Japan, and Luxembourg.’
WASHINGTON, D.C. – U.S. Senate Majority Leader Mitch McConnell (R-KY) delivered the following remarks on the Senate floor regarding the ratification of important tax treaties:
“Speaking of economic growth and development, the Senate will soon turn our attention to a number of bilateral tax treaties with important U.S. trading partners. We have these kinds of agreements in place to reduce tax evasion, tax avoidance, and unfair double taxation of U.S. citizens and businesses who also conduct business abroad. The four that we’ll consider this week are agreements with Spain, Switzerland, Japan, and Luxembourg.
“The U.S. government and each of these foreign governments have painstakingly negotiated updates to existing agreements about how certain kinds of commerce will be taxed and which country will tax them. In short, Senate ratification of these protocols will mean less confusion, more certainty, and often fewer taxes for U.S. job creators. And, by the way, a simpler rule book for overseas investors who want to invest their money here.
“Fairer treatment for our own American job creators and more enticement for foreign investment to head here. That’s what we call a win-win. We’re talking about a serious economic impact. In addition to the four countries we’re tackling this week, there are three more nations with tax treaties pending, which I know the administration is continuing to work on with the Foreign Relations and Finance Committees to finalize work on these remaining agreements.
“Combined, these seven foreign countries invest more than $1.2 trillion in the United States. More than a trillion dollars in foreign investment. And by some estimates, hundreds of thousands of U.S. jobs are tied up, directly or indirectly, in trade with these countries. These trading relationships touch all 50 states. Every one of my colleagues is familiar with communities that benefit from the foreign investment. For my part, that includes thousands of workers in Kentucky.
“One major manufacturer with ties to Spain employs 1,500 people in my state. It accounts for more than a third of all the stainless steel produced in the United States every year. Over the three decades it’s operated in Carroll County, the surrounding community has benefited from more than $60 million dollars in tax revenue. That’s just one of many job creators in my home state, and it’s far from the only one with a serious interest in seeing these measures across the finish line. From consumer goods makers to industrial suppliers, Kentucky continues to welcome job-creating investment from across the world.
“I think practically every American is familiar with ‘Hot Pockets.’ A culinary staple of busy families, workers, and college students everywhere. But not everyone knows that, as of several years ago, every single Hot Pocket is cooked in Mt. Sterling, Kentucky. The facility employs more than one thousand Kentuckians.
“The parent company is Nestle, based in Switzerland. So there are not only hardworking Kentuckians but also lots of hungry consumers across the country who can understand why we need to keep our international trade in sync. Passing these agreements will help every state keep up the economic momentum. It will reinforce the international trade that is so essential to our economic success and help stave off further trade disruptions. I urge every one of my colleagues to join me in voting for them this week.”
Related Issues: Taxes