SIA Tax Committee Letter to Chairman Dave Camp (March 2012)
SIA's Tax Reform Working Group is led by PMC-Sierra CEO, Greg Lang at the direction of SIA's Board of Directors. This special group of Tax Directors, Senior Exectives and Members of SIA's existing Tax Committee was formed in March of 2011 to prepare the indusry for the tax reform debate that is expected to commence immediately following the November 2012 elections. In March of this year, the SIA Tax Committee crafted a complete response to a draft corporate tax reform proposal released by House Ways and Means Committee Chairman Dave Camp (R-MI). The committee asked SIA for its specific views on this proposal and suggested improvements. This letter was delivered to the Committee by SIA's CEO Board of Directors during its March 2012 meeting in Washington, DC.
From the letter:
Principles for Tax Reform
Tax policy in our view is a very important and very viable tool for improving our economy. Our members are engaged in the semiconductor business all over the world. They know quite well the effects of tax policies that other countries follow. It is self-evident that the tax policy of the U.S. is very important and should be shaped by important principles that are intended advance our economy.
In that light, we urge the Committee take a fundamental look at our tax system in the context of these principles:
• The purpose of the tax code is to raise the necessary revenues to support the activities of the government.
• It should be perceived as fair, which has generally been interpreted as a tax with a low rate and broad tax base.
• It should be understandable, stable and predictable for both taxpayers and the government.
• It should be linked to the long-term economic goals of the U.S.
• It should allow US companies to compete effectively against foreign companies in the global marketplace.