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Tax

Background

The U.S. tax code puts forest products industry manufacturers at a distinct disadvantage against international competition.  The United States has the highest statutory corporate tax rate among OECD countries. This is because most other OECD member countries have lowered corporate rates during the past two decades, while U.S. corporate rates have remained nearly stagnant.

Significant reform of the U.S. tax system is necessary for our industry to better compete in the global marketplace. The overall goals of federal tax reform should be to improve economic growth, job opportunities and the competitiveness of U.S.-based businesses.  Maintaining a robust U.S. paper and wood products manufacturing sector is a critical factor in achieving these overall goals.  As a result, special attention should be paid to ensure that the overall impact of federal tax reform does not result in counter-productive tax increases that will be harmful to economic growth and job creation.  Ensuring that the resulting tax code provides a level playing field for business activity while deflecting attempts to pick “winners and losers” among economic players should be a top priority.. 

Policy

A tax system with the lowest possible tax rates is desirable to foster capital investment, jobs creation and economic growth.To address the competitive disadvantage confronting paper, packaging and wood products manufacturers, AF&PA supports a tax competitiveness agenda that:

  • Lowers the U.S. statutory corporate income tax rates to approximately 25 percent, which would be more in line with the average among other OECD countries,.
  • Maintains tax policies to foster capital investment; appropriate treatment of depreciation, interest expenses, and research expenditures to ensure capital intensive manufacturers -- such as paper and wood products companies - invest in new and more efficient equipment.
  • Reforms international tax rules to include a competitive territorial tax system that would allow U.S. companies to compete on a level playing field in global markets.
  • Ensures adequate transition rules to protect existing investment.
  • Prevents retroactive tax increases.

AF&PA and our member companies will continue to work for a fair and equitable tax structure to ensure the future global competitiveness of U.S. forest products manufacturing facilities and the nearly 900,000 jobs they support in thousands of communities across America.