Category Archives: Economic Liberty

Coalition Seeks to Undo Crony Insurance Tax-Loophole

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Conservative Coalition Supports Senate Effort to Close “Bermuda Tax Triangle” Loophole and Protect American Jobs

Washington D.C. – On behalf of the following free-market groups and organizations, together representing Americans from coast to coast, we urge you to support the Senate’s Anti-Base Erosion Provision, which removes an unfair advantage favoring foreign insurers over U.S.-headquartered companies. Under current U.S. tax law, foreign based insurers are able to transfer profits to affiliates in offshore tax-havens tax free, but does not afford equal treatment to U.S. based insurers.

As a candidate for President, Donald Trump touched a nerve with voters by pointing out that our tax code is unfair to American companies and employees. One such unfair provision is the insurance tax-haven loophole, which has discriminated against the American insurance industry for over three decades. The proposed Senate tax bill removes the incentive that foreign companies currently exploit to shift thousands of American jobs overseas and avoid paying U.S. taxes. The federal government should never reward or encourage companies to make decisions at the expense of U.S. taxpayers and jobs.

The Senate tax bill includes strong anti-base erosion measures that will go a long way in stopping foreign companies from gaming the U.S. tax code. It is imperative that Congress resist any desperate attempts by foreign insurers to weaken the language thereby preserving their loophole.

Foreign insurance companies are using misleading talking points to prevent a level playing field for U.S. companies. While their inaccurate claims alleging reduced capital and increased prices confuse the public discussion, the bottom-line is they want to avoid paying U.S. taxes and continue gaming the system. The Senate bill would merely require foreign companies to pay U.S. taxes on their U.S. generated insurance business instead of allowing them to use offshore affiliates to strip earnings.

Preserving a loophole for foreign insurers undermines the very foundation of the tax reform effort being considered on Capitol Hill.

At a time when companies are inverting, and the American people are demanding action against corporate tax avoidance, it is long overdue that Congress close the loophole. We urge Congress to support the provision in the Senate bill.

Read the full letter HERE: Congress Must Undo Crony Insurance Tax-Loophole_Coalition Letter

CapAllies joins IPR Coalition Letter

COALITION: THE SEOUL HIGH COURT’S IMPENDING RULING ON EXTRATERRITORIALITY IN THE QUALCOMM MATTER WEAKENS TO INTELLECTUAL PROPERTY RIGHTS

 Washington D.C. – Today, a broad coalition of free-market and center-right organizations released a statement regarding a pending decision of Korea’s Seoul High Court, Korea’s court of last resort. The decision will be whether to stay the Korea Fair Trade Commission’s (KFTC’s) overbroad ruling against Qualcomm, Inc., the aggrieved party in the proceeding.

Below is the statement released by the coalition:

“We are troubled by the prospect that the Seoul High Court might fail to stay the KFTC’s grossly overbroad extraterritorial remedies against Qualcomm. Such a ruling by the Court would explicitly condone the KFTC’s intrusion upon U.S. sovereignty, resulting in far-reaching implications harmful to free trade, the United States economy, and intellectual property as a whole.

Earlier this year, the KFTC took the extraordinary step of seeking to impose a one-size-fits-all approach to how patents around the world are licensed. This unprecedented remedy is a bald-faced attempt to slash the value of a U.S. company’s global patent portfolio and shield Korean domestic companies from American competition.

“The KFTC’s extraterritorial remedies go well beyond protecting Korean consumers and purport to dictate the terms upon which a U.S. company can license its intellectual property—even well outside Korea’s borders.  Such remedies result in a major transfer of patented technology from U.S. to Korean companies, severely undermining U.S. leadership in innovation and economic growth. This will adversely impact every company in the United States that holds a patent of any kind.

“As the U.S. embarks upon a review of its trade and investment relationship with Korea, we urge the Trump Administration to demand assurances from the highest levels of the Korean government that all U.S. companies will be protected from the KFTC’s extraterritorial overreach. Anything less is a direct attack on our economy, our intellectual property, and our sovereignty.”  (PDF here: SKorea KFTC Case Ltr Aug2017)

Sincerely,

American Conservative Union

American Conservative Union Foundation

American Commitment

American Legislative Exchange Council

ALEC Action

American Business Defense Council

Americans for Limited Government

Capitol Allies

Conservatives for Property Rights

Consumer Action for a Strong Economy

Council for Citizens Against Government Waste

Eagle Forum Education & Legal Defense Fund

FreedomWorks

Frontiers of Freedom

Institute for Liberty

Less Government

Let Freedom Ring

Taxpayers Protection Alliance

Tea Party Patriots

Tradition, Family, Property, Inc.

U.S. Business & Industry Council

 

 

 

A Total Collapse in the Labor Force Participation Rate

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5.9% versus 62.7%: The Spin versus the Truth

By Jerry Rogers

At Northwestern University last week, President Obama said we are better off than we were six years ago; and the September Jobs Report—at first glance—supports the President’s assertion. With 248,000 new jobs added to the economy, things appear to be on the upswing.

However, while the keepers of conventional wisdom celebrate the 5.9 percent unemployment rate, the economy continues to sputter. The pundits gladly report on the 248,000 Americans who found jobs—good news! What they’re not reporting is the disturbing news of more than 300,000 Americans who have quit the work force; people who have given up and dropped out.

The unemployment rate dropped because more people simply gave up looking for jobs. The labor force participation rate in September fell to 62.7 percent, a level not seen since 1978. 92.6 million Americans are not participating in the work force!

Too many Americans are still working jobs for which they are overqualified, and wages are still lagging behind the rising costs for housing, healthcare, education, groceries, and energy. More than 500,000 full-time jobs have been replaced by 800,000 part-time jobs since the great recession, the highest increase in part-time employment since 1993.

More than five years after the recession ended, we’re still living in a feeble economy.

 

Jerry Rogers is vice president at the Institute for Liberty and the founder of Capitol Allies, an independent, nonpartisan effort that promotes entrepreneurship, economic growth, and free enterprise.