WASHINGTON – Today technology industry trade group ITI, the global voice of the tech sector, released the following statement from CEO and President Dean Garfield after the release of the European Commission communication on a Fair and Efficient Tax System in the European Union for the Digital Single Market:
“We respect the European Commission’s desire to develop a tax code that works for its people, economy, and businesses,” said Garfield. “As active participants in the European economy, we urge the European Commission to recognize the integrated and increasingly global nature of capital. Today the European Commission moved forward in developing an EU approach to digital tax issues. We urge the Commission to ensure its own policymaking is consistent with the larger multilateral cooperation that is key to success. We look forward to working with the Commission to advance a shared international approach to these issues.”
“Furthermore, we also urge Congress and the administration to modernize the U.S. tax code by passing pro-growth tax reform that levels the playing field for U.S. companies. The last time the U.S. updated its tax code no one understood the potential of the internet, the app economy was just an idea, and there was significantly less global competition. By passing pro-growth tax reform, which includes lowering the corporate tax rate and a market-based international tax system, our members will be able to do what they do best: create jobs and grow the economy.”
The tech industry considers tax reform a key legislative priority and ITI most recently laid out its tax reform priorities for Congress to update the archaic tax code by focusing on:
- Lowering the corporate rate
- Moving to a territorial system in which profits are taxed where they occur, and
- Investing in innovation that is needed to bolster economic growth and U.S. job creation