Washington, D.C. - In response to the discussion draft proposal released today by Ways and Means Chairman Dave Camp, which outlines the transition of America’s tax code from a complex worldwide taxation system to a more competitive territorial system and lowers the top tax rates for both individuals and employers to 25 percent, Congressman Kevin Brady made the following statement:

“If America hopes to remain the world’s largest economy, we need a modern tax system that meets or beats our competitors.  I applaud Chairman Camp for developing this discussion draft on international tax reform and I encourage businesses to inform members of the Ways & Means Committee on how this approach will impact their ability to compete and win in the global marketplace.

“As for the repatriation provisions, there is a great deal to analyze in the proposal.

“The draft answers the question of whether lowering the current tax gate to let stranded U.S. profits flow back into the American economy is a necessary action. Now the question is simply when.  Absent fundamental tax reform this fall, I believe there is a strong case in this weak economy to allow companies to repatriate those investments sooner rather than later.  This will be the first step towards fundamental tax reform.

“The clock is ticking and U.S. companies face increasing pressure to deploy their overseas profits now outside the United States where they get a much bigger bang for their buck than paying the large penalty to bring them home to be reinvested in America.

“Repatriation this fall would be a significant free-market stimulus of up to $1 trillion that will create jobs, generate new federal revenue, and inject new investment into American research and development, expansions, and strengthening the stability of America’s job creators.”