U.S. Chamber of Commerce

==Background==
==Biographical information==
===History===
===Current activities===
====Shipping Jobs and Stashing Profits Overseas: The Coalition to Defend Tax Loopholes====
In 2009, American President Obama announced measures to reform U.S. tax laws to restrict business from taking advantage of "loopholes that let companies ship jobs and stash profits overseas" Allen, M. & McGrane, V. (2009) How business will wage war on Obama tax plan Reuters 12th May 2009. Accessed 5th June 2009. 
The proposals are described as 'to crack down on illegal overseas tax evasion, close loopholes, and make it more profitable for companies to create jobs here in the United States.'Montopoli, B. (2009) Remarks: Obama On Closing Tax Loopholes CBS News. 4th May 2009. Accessed 5th June 2009. As Obama states "Even as most American citizens and businesses meet these responsibilities, there are others who are shirking theirs,"... "And many are aided and abetted by a broken tax system, written by well-connected lobbyists on behalf of well-heeled interests and individuals." Obama describes the present system as allowing companies that create jobs overseas to take deductions on their expenses when they do not pay any American taxes on their profits. He goes on to describe how it also allows company's subsidiaries to report to the IRS that they are paying their taxes abroad, whilst telling the foreign government that they are paying it elsewhere, which results in the avoidance of paying tax anywhere at all. 
Big business immediately responded to the proposals by setting up a coalition comprising large multinationals such as McDonald's, Dell and Prudential, along side about 200 trade associations which includes the U.S. Chamber of Commerce, the National Association of Manufacturers and the Business Roundtable. This coalition, known as Promote America's Competitive Edge (PACE), have been 'holding nonstop meetings on Capitol Hill' since the plans were revealed in March 2009. Their strategy is described as being to 'localize the fear of job losses by having companies reach out to home-state senators and representatives. After that, the companies branch out to lawmakers from states where they have employees'. The coalition describe their lobbying as being 'educational', however the spin used is laden with threats. They argue that if the proposed changes go ahead, that 'multinationals would most likely choose to move their headquarters elsewhere — taking the jobs and capital out of the United States'Allen, M. & McGrane, V. (2009) How business will wage war on Obama tax plan Reuters 12th May 2009. Accessed 5th June 2009. 
"We're going to spend whatever it takes," said Brigitte Schmidt Gwyn, senior director of congressional relations for the Business Roundtable
It is reported that the main argument used by big business is that closing these loopholes would be bad for the American economy as it would weaken business by causing a decrease in their stock value. This leads to the threat of businesses being taken over by foreign companies or of leaving the country altogether. Ensuring that a company pays its fair share in taxes may result in a dent in their bottom line, but as Obama argues, the 'way to make American businesses competitive is not to let some citizens and businesses dodge their responsibilities while ordinary Americans pick up the slack.' Montopoli, B. (2009) Remarks: Obama On Closing Tax Loopholes CBS News. 4th May 2009. Accessed 5th June 2009. At present, the top corporate tax rate is 35%, yet according to the Treasury Department it is estimated that in 2004 (the most recent year for which data is available), American multinationals paid $16 billion in taxes on $700 billion in foreign income. This translates into an effective tax rate averaging at 2.3%Calmes, J. & Andrews, E. L. (2009) Obama Calls for Curbs on Offshore Tax Havens New York Times 4th May 2009. Accessed 5th June 2009. Closing these loopholes and ensuring that big business pays it dues like everyone else is estimated to save American taxpayers $210 billion over the next 10 years, it is proposed that the changes take effect from 2011. Two examples of companies avoiding American taxes are given by the New York Times. These are General Electric who, according to their 2008 annual report, has deferred American taxes on $75 billion in foreign profits by keeping them outside the United States (they say they have no plans to ever repatriate that money) and Citigroup, which has deferred taxes on $22.8 billion in foreign income.
$86.5 billion would be raised by ending the practice of companies creating foreign subsidiaries to shift income in ways that avoid taxes.Montopoli, B. (2009) Remarks: Obama On Closing Tax Loopholes CBS News. 4th May 2009. Accessed 5th June 2009.. The business lobbyists argue that businesses 'locate overseas not to cheat on their taxes but because that's where the growth markets are'Allen, M. & McGrane, V. (2009) How business will wage war on Obama tax plan Reuters 12th May 2009. Accessed 5th June 2009. However a prime example which contradicts this argument is given by Obama when he describes one building in the Cayman Islands that houses the headquarters of over 12,000 business. As he states, 'either this is the largest building in the world or the largest tax scam in the world... And I think the American people know which it is. It's the kind of tax scam that we need to end'Montopoli, B. (2009) Remarks: Obama On Closing Tax Loopholes CBS News. 4th May 2009. Accessed 5th June 2009..
The New York Times reports that companies that would be especially hit by the proposals are pharmaceutical, technology, financial and consumer goods companies. They named Goldman Sachs, Microsoft, Pfizer and Procter & Gamble (who have major overseas operations or subsidiaries in tax havens like the Cayman Islands) as being amongst the most affectedCalmes, J. & Andrews, E. L. (2009) Obama Calls for Curbs on Offshore Tax Havens New York Times 4th May 2009. Accessed 5th June 2009. The Government Accountability Office is reported to have found that 83 of the 100 largest American companies have subsidiaries in tax havens. The report listed 83 subsidiaries for Procter & Gamble alone, and Financial services companies were shown to have even more: with Citigroup showing 427 and Morgan Stanley 273.
==Views==
==Affiliations==
U.S. Council for International Business - memberU.S. Council for International Business List of USCIB Members Accessed 10th June 2009
==People==
==Funding==
==Clients==
==Publications, Contact, Resources and Notes==
===Publications===
===Contact===
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===Resources===
===Notes===
Category:Corporate Lobby Groups