ADVERTISEMENT
2 /3 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Policy

Tax reform plan divides industry

by Glenn Hess, special to C&EN
February 27, 2017 | APPEARED IN VOLUME 95, ISSUE 9

Several large chemical and pharmaceutical manufacturers are calling on Congress to reform the corporate tax code and include a controversial proposal by Republicans in the House of Representatives that would tax imports but not exports. The changes would encourage businesses to invest in the U.S. and help protect jobs from “unfair foreign competition,” the companies wrote in a letter last week to congressional leaders. Sixteen executives signed the letter, including the CEOs of Dow Chemical, Celanese, Celgene, Eli Lilly & Co., Merck & Co., and Pfizer. But the Society of Chemical Manufacturers & Affiliates, which represents smaller specialty chemical makers, says the plan could hurt companies that import raw materials that are not available domestically. “Our members cannot afford to carry the burden of an import tax,” says Robert F. Helminiak, SOCMA’s managing director of government relations. The GOP blueprint would cut the corporate tax rate from 35% to 20% and allow exporters to deduct the cost of production from their taxable earnings. But companies would not be able to deduct the cost of imports, a feature known as border adjustment that effectively imposes a tax on those imported goods.

X

Article:

This article has been sent to the following recipient:

Leave A Comment

*Required to comment