WASHINGTON and MORRISTOWN, N.J., Jan. 25, 2012 /PRNewswire/ -- Financial Executives International (FEI), a professional association for senior-level financial executives from both major public and private companies, today issued a statement to address reservations with certain key points of President Barack Obama's State of the Union address Tuesday.
"While I applaud the president's commitment to restore jobs, as well as his call to lower the corporate tax rate to make American companies more competitive internationally, the president once again calls for tax increases on many corporations and individuals who are responsible for generating new investment and jobs here at home," said Marie Hollein, President and Chief Executive Officer, Financial Executives International.
"The president's proposals seem to overlook the fact that more than half of American jobs are supported by those whose taxes would be raised substantially under his plan. We believe, instead, that it is possible to develop economic policies that both foster job creation and reward the success of those who have one."
- Corporate Tax Policy: The president directed Congress on Tuesday to "bring jobs back" by changing tax policies that he says incentivize outsourcing. FEI's Committee on Taxation supports corporate tax reform that would lower the corporate income tax rate and put in place a territorial tax system to improve the competitiveness of American companies at home and abroad. FEI is encouraged by the president's recognition of the fact that the U.S. has one of the highest corporate income tax rates in the world. FEI awaits with concern further details on the president's "basic minimum tax" proposal on American multinational companies.
- Regulatory Relief: FEI committees are in basic agreement with the president's statements in support of regulatory relief to entrepreneurs and tax relief to small businesses wishing to expand.
- Individual Tax Rates and Privately Held Companies: FEI is alerting its private company members to pay close attention to what President Obama said in regards to individual tax rates. FEI supports reforming corporate and individual tax rates concurrently. By not extending the 2001 and 2003 tax cuts to all Americans, these privately held and family-owned businesses may find themselves in challenging situations as they deal with higher tax rates, sapping capital that could be spent on expanding their businesses, increasing workers' wages or creating new jobs. Consequently, further increases in individual tax rates affect not only private companies, but could also jeopardize America's fragile economic recovery.
Financial Executives International is the leading advocate for the views of corporate financial management. Its 15,000 members hold policy-making positions as chief financial officers, treasurers and controllers at companies from every major industry. FEI enhances member professional development through peer networking, career management services, conferences, teleconferences and publications. Members participate in the activities of 85 chapters, 74 in the U.S. and 11 in Canada. FEI is headquartered in Morristown, NJ, with additional offices in Washington, D.C. and Toronto. Visit www.financialexecutives.org for more information.
SOURCE Financial Executives International