Washington (Aug. 12, 2002) -- The United States Chamber of Commerce says that proposed legislation that obstructs U.S. corporations' offshore moves is unfair.

Current proposed legislation would prevent offshore companies from securing government defense contracts. According to Chamber chief economist Martin Regalia, this would unfairly penalize companies for operating in the U.S. and doing business exactly like a foreign multinational corporation.

"A foreign multinational does not have to pay worldwide taxes," he said. "And a U.S. company operating in exactly the same way in exactly the same markets is put at a disadvantage by the U.S. tax code. Moving their headquarters offshore permits U.S. companies to pay exactly the same taxes that their foreign competitors pay to the United States."

"U.S. companies with offshore addresses create jobs in the United States. They create income for U.S. citizens. But companies have to be responsible to the investors and shareholders. Companies have to be responsible to their workers and customers. The tax code of the United States has forced these companies abroad. If we want them back, we must fix the tax code," Regalia said.

-- Electronic Accountant Newswire staff

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