U.S. Reps. Pat Tiberi (R-OH) and Jim Renacci (R-OH) joined Ohio businesses in voicing concerns on Wednesday about the impact of proposed debt-equity regulations on investments and job growth.
The Treasury Department proposed regulations in April to address corporate inversions under Section 385 of Internal Revenue Code that would address whether an interest in a related corporation is viewed as stock or indebtedness, or a combination of both.
Tiberi and Renacci both released statements after 47 employers from various industries in Ohio warned in a letter to Treasury Secretary Jack Lew that the proposed debt-equity rules would have a negative impact on investments and job growth.
“I’ve been warning the Obama administration from the start that the proposed 385 regulations go too far,” Tiberi said. “This letter from some of the top job creators in Ohio is further proof that far-reaching, one-off regulations are hurting our economy and making it harder for American businesses to invest at home. At some point, the administration will need to start listening to these substantial and serious concerns from businesses in my state and across the country.”
Tiberi joined fellow members of the House Ways and Means Committee in sending letters to Lew in June and August detailing the potential negative consequences of the proposed regulations.
“I’ll continue to advocate for its complete overhaul to protect good-paying American jobs,” Tiberi said. “The strongest step we can take to drive real, robust economic growth and knock down barriers to investment is with comprehensive reform to fix our broken tax code.”
Renacci, meanwhile, said that the letter from Ohio’s business community reinforces what he has been saying for months – the administration has issued disruptive rules that would slow economic growth rather than address the outdated and uncompetitive tax code.
“With these regulations, the administration wants to build a virtual wall around the U.S. to trap corporate tax dollars from going overseas,” Renacci said. “But the problem is that they will likely have the opposite effect and drive even more companies away from investing and creating jobs in Ohio and the rest of the U.S. In contrast to this punitive approach, I have developed a pro-growth tax reform plan that will unleash investment and job creation in Ohio and throughout this country. While this administration has failed to seize this opportunity for real reform, I hope the next president considers a bold tax-reform agenda. The strength of our nation and our economy depends upon it.”