Promote America’s Competitive Edge (PACE) Coalition is making waves by advocating that the US maintain a level playing field for taxation of international operations.
The PACE Coalition is made up of a number of different taxpayer organisations: the Business Roundtable; the National Association of Manufacturers; the National Foreign Trade Council; the Technology CEO Council and the US Chamber of Commerce.
“The coalition’s real impact is in education,” says Matt Miller (pictured), vice president, Business Roundtable. “International tax rules are extremely complex and easily misunderstood. In our communications with Capitol Hill and the administration we have been able to ensure a greater understanding of the significance of these rules.”
PACE’s key policy issues include the need to move to a territorial system, where income is taxed where it is earned, not where the taxpayer is resident.
“We’re dealing with a century-old system. It’s completely outdated.” Miller believes politicians will have more interest in tax reform after the presidential election. “We are optimistic that when we get beyond the campaigning and back to policy making, we will get a competitive territorial system,” he says. “We have to get the economy growing and tax reform is a big part of that.”