USCIB Statement to US Government on Remote Worker Relief

USCIB has joined with over a dozen other associations to issue a statement on July 2 to urge the federal government to allow an employee’s wages to be treated as being earned at their normal work location and to have Congress protect health care and other workers travelling across state lines to help with the COVID-19 response. The full statement:

“The dual challenges of the COVID-19 pandemic and an economic crisis have created significant disruption and uncertainty for American workers. To lighten the burden on individuals and families, the undersigned associations strongly urge that you support legislation addressing state and local tax confusion arising for employees required to work remotely because of COVID-19.

“Providing this certainty at an otherwise uncertain time is essential. Without Congressional action, employees may receive unexpected and unwelcomed tax surprises when they file their 2020 state and local income tax returns next year – and face penalties and interest charges (and even potential double taxation) through no fault of their own. A federal solution is needed because the states are taking different and conflicting positions on how the income of workers displaced by the pandemic should be taxed. Solving this problem will ensure employees who are working remotely during the pandemic are not penalized for doing so.

“Currently, wages earned by an employee generally are subject to tax by the state where they work. However, due to COVID-19, many workers are unable to report to their normal work location and are working in a different state than usual due to local law restrictions, closed schools, family health or other reasons, complicating their state tax reporting obligations.

“The solution to this problem is simple: enact federal legislation that reduces uncertainty by allowing an employee’s wages to be treated as being earned at their normal work location. Congress should also protect health care and other workers traveling across state lines to help with the COVID-19 response from surprise or higher tax bills. The Remote and Mobile Worker Relief Act of 2020, S. 3995, recently introduced by Senators John Thune (R-SD) and Sherrod Brown (D-OH), would accomplish these goals. These solutions will maintain the status quo by putting wage earners and their employers in the same tax position they would have been in, but for the pandemic, while providing important certainty to workers who temporarily relocate to provide critical assistance during this pandemic.

“We urge the inclusion of these changes in the next COVID-19 legislation.”

USCIB Statement on USMCA Entry Into Force

Washington, D.C., July 1, 2020 – The U.S. Council for International Business (USCIB), which represents many of America’s leading global companies, welcomes today’s entry into force of the United States-Mexico-Canada Agreement (USMCA) trade agreement, preserving and deepening the economic ties in North America and bolstering the global competitiveness of our companies and workers. The implementation of this agreement comes at a critical time of restoring certainty to U.S. industry in the North American market, as the global market is working toward recovery from the impacts of the current crisis.

The three partner countries must continue to work together to ensure effective implementation of this agreement, so that the benefits of the agreement in its updated and modernized provisions including on digital trade and customs can be realized. Over 12 million American jobs depend on trade with Canada and Mexico, and continuing to build on this economic relationship is important for U.S. industry for future economic growth. USCIB looks forward to a seamless transition to the new agreement.

About USCIB:
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (known as BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

USCIB Announces Leadership Change in Customs, Trade Facilitation Work

Jerry Cook (left) alongside Former Acting United States Secretary of Homeland Security Kevin McAleenan and USCIB President & CEO Peter Robinson

USCIB has announced that Vice President for Government Relations at Hanesbrands Jerry Cook is stepping down from the chairmanship of USCIB’s Customs and Trade Facilitation Committee as of July 1.

For over ten years, Cook has led the multi-sectoral Committee in strengthening USCIB’s content practice in customs and trade facilitation field and helped position the organization with the U.S. Departments of Homeland Security (including Customs and Border Protection), Treasury, and Commerce, as well as the United States Trade Representative, the International Chamber of Commerce and the World Customs Organization, among others.

After over ten years of chairmanship, Cook noted that it is time for a change.

“While serving as Chair, I have witnessed much growth in this practice and am truly proud of the progress and accomplishments the membership has jointly achieved,” said Cook. “I appreciate the opportunity to have worked with all for achieving many consensus positions and efforts and being a part of such a strong and dedicated team. I will continue to look forward to seeing the continued success of USCIB, and the work I have been proud to lead.”

USCIB expresses its gratitude to Cook for his service and will announce successor leadership in the near future.

Virtual ICANN Focuses on COVID-Related Domain Name System Abuse

The Internet Corporation for Assigned Names and Numbers (ICANN) held its second meeting of the year June 22-25. Due to COVID-19-related safety concerns the meeting, originally planned to take place in Malaysia, was again held virtually. USCIB Vice President for ICT Policy Barbara Wanner joined the meeting remotely, along with several USCIB members as part of ICANN’s Business Constituency (BC).

As ICANN President and CEO Goran Marby noted, the ability of the ICANN community to adapt to this challenging time represents a “testament to our shared goal of [working to ensure] the continued security, stability and resilience of the DNS [Domain Name System].” Marby also noted that protecting against DNS abuse never has been more critical since “bad actors” have exploited the pandemic.

According to Wanner, the spike in COVID-related DNS abuse was a hot topic at ICANN 68. USCIB reiterated acute concerns expressed at ICANN 66 and ICANN 67 about inaction by ICANN Org and the contracted parties in mitigating domain name system (DNS) abuse that continues to escalate by the day. The BC asserted there should be an agreed approach to implementing tools to combat such abuse that is institutionalized as a process and memorialized in contracts between ICANN and the registries and the registry/registrar agreements.

“ICANN Org continued to insist while it expects registry operators to enforce their agreements with registrars prohibiting DNS abuse, there continues to be a lack of clarity about what constitutes DNS abuse which complicates contractual enforcement,” said Wanner. “The contracted parties, in turn, underscored their commitment to combatting abuse and highlighted voluntary efforts to develop a Guide to Abuse Reporting Best Practices. By the meeting’s conclusion, there was no clear path forward, although several approaches were proposed.”

USCIB Joins With Global Community to Oppose Revision to ISO 26000

USCIB joined with several other U.S. business associations in opposing a recent proposal to revise ISO 26000 on Social Responsibility, develop implementation guidelines or standards and create a new Technical Committee (TC) on Social Responsibility.  After a five-year global negotiation, ISO 26000 was released in November of 2010 as a guidance document rather than a management systems for certification purposes and it remains a valuable resource for companies.

USCIB Vice President for Corporate Responsibility and Labor Affairs Gabriella Rigg Herzog observed that the proposal currently before ISO would, “not only reverse the consensus achieved over the five year negotiation, but would also divert resources and away from ongoing implementation and innovation in the field of social responsibility.”

Global stakeholders who also opposed this proposal included leading human rights NGOs, the International Trade Union Confederation, the International Organization of Employers (IOE), and the International Labor Organization (ILO). Moreover, and as was expressed by ILO Secretary-General Guy Ryder, adoption of this proposal would divert focus from and undermine universally accepted standards on human rights and labor issues, including the UN Guiding Principles on Business and Human Rights, ILO Conventions, the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy, and the OECD Guidelines for Multinational Enterprises.

USCIB continues to follow this matter and will be in communication with members and our global affiliates as this matter develops.

USCIB Statement on OECD’s Inclusive Framework

USCIB has issued the following statement on June 23 with regards to the OECD Inclusive Framework process:

USCIB remains committed to proactive participation in the current OECD Inclusive Framework process to achieve consensus on acceptable modifications to the international tax system to properly address the tax challenges of the digitalization of the economy.

USCIB and its member companies will continue to work diligently towards a sustainable agreement and will encourage the U.S. government to remain committed to this process.

Taxation

Magnifying Your Voice with USCIB:

  • USCIB’s Tax Committee is the most respected U.S. business association on international tax issues. USCIB is the only U.S. business association formally affiliated with the world’s three largest business organizations where we work with business leaders across the globe to extend our reach to influence policymakers in international markets that are important to American business.

Trends and Challenges Facing U.S. Business:

  • Multiple sets of inconsistent rules that drive up costs and result in double taxation
  • The mounting political pressure to move towards changing the taxation of the digitalized economy
  • Efforts to unfairly increase the tax burden on companies

USCIB’s Response:

  • Build consensus with like-minded industry peers and participate in off-the-record briefings with policymakers both home and abroad
  • Engage with the OECD on the development of international taxation principles
  • Proactively shape the development of the OECD’s guidance on the taxation of the digitalized economy by demonstrating to policymakers that unilateral action can result in double taxation, decreased trade, and reduced global growth
  • Actively monitor and contribute to the work of the UN Committee of Tax Experts to ensure its alignment with the work of the OECD Tax Committee and inform policymakers of their actions’ impact on investment
  • Support enactment of foreign tax simplification provisions in the IRC that would significantly reduce the burden of complexity for U.S. companies and enhance their international competitiveness
  • Host an annual conference in Washington, DC that provides a unique opportunity for the U.S. business community to interact with key representatives from the OECD Centre for Tax Policy and Administration (“CTPA”).

More Recent Accomplishments

News Stories

Business at OECD Head Shares 2020 Policy Priorities With USCIB (2/11/2020) - Secretary General of Business at OECD (BIAC) Russel Mills visited USCIB’s Washington DC and New York offices the week of
Robinson Kicks Off 2020 With OECD, ICC France, ICC Germany  (1/21/2020) - The Organization for Economic Cooperation and Development (OECD) held its annual consultation with Business at OECD on January 13 in

Read More

Chair

Bill Sample
Tax Policy Advisor
Microsoft Corporation

Vice Chairs

Timothy M. McDonald
Vice President, Finance & Accounting, Global Taxes
The Procter & Gamble Company

Will Morris
Deputy Global Tax Policy Leader
PwC

Louise Weingrod
Vice President, Global Taxation
Johnson & Johnson

Chad J. Withers
Global Tax Director
Caterpillar Inc.

Staff

Carol Doran Klein
Vice President and International Tax Counsel
202-682-7376 or cdklein@uscib.org

Erin Breitenbucher
Senior Policy & Program Associate and Office Manager, Washington
202-682-7465 or ebreitenbucher@uscib.org

Subcommittees

BIAC/ICC Subcommittee

Legislative and Administrative Developments Subcommittee

Tax Treaties Subcommittee

Transfer Pricing Subcommittee

Working Groups

Working Group on Consumption Taxes

Working Group on the Digital Economy

Working Group on Environment and Energy Taxes

 

USCIB, Global Industry Urge WTO to Resume Full Work

As international organizations such as the UN Security Council, International Monetary Fund (IMF) and World Bank are routinely working online, the World Trade Organization (WTO) has yet to fully empower its substantive bodies to meet and take decisions virtually. In light of this, USCIB, along with major industry associations across the world, issued a statement on June 15 urging WTO Members to restart a full, regular schedule of work online. The statement emphasized that the international business community needs the WTO fully engaged across its existing work program, as well as to address the COVID-19 pandemic and its economic aftermath.

The statement noted: “Trade law and policy has an important, indeed integral, role to play in recovery. The replacement of the departing Director-General Roberto Azevêdo makes a return to regular working using virtual tools even more important…We cannot return to where we were, we must move forward, and this will require a whole of society approach at the local, national, and international level.”

The industry groups also reiterated commitment to the WTO and the international rules-based trade architecture for which it is responsible.

For the full statement, click here.

USCIB Concerned Over Reported Administration Changes to US Nonimmigrant Visa Programs

June 17, 2020, New York, New York — The United States Council for International Business (USCIB) expressed concern over reports of potentially restrictive changes to the U.S. nonimmigrant work and exchange visa programs under consideration by the U.S. Administration. The confusion caused by these reports creates uncertainty for U.S. businesses at the worst possible time – when companies are working to join with government and labor to secure a successful economic recovery following the negative health and economic impacts that COVID-19 has had on the U.S. and global economies.

As USCIB has long expressed, labor migration contributes to vibrant economies and requires clear, transparent, stable and efficient government migration policies that support U.S. workers and businesses. We support meaningful dialogue to reform U.S. immigration laws through a consultative regulatory process that includes engagement with the U.S. employer community. We join our members in the belief that drastic restrictions to nonimmigrant work visa programs and added burdens on companies seeking to use these programs will only constrain efforts to revive the U.S. economy to the detriment of workers and employers. Such restrictions also pose potential short- and long-term consequences for U.S. competitiveness by disconnecting domestic businesses from vital sources of talent and innovation and risk the loss of critical jobs and investments to foreign competitors.

About USCIB:

USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world, generating $5 trillion in annual revenues and employing over 11 million people worldwide. As the U.S. affiliate of the International Chamber of Commerce (ICC), the International Organization of Employers, and Business at OECD (BIAC), USCIB helps to provide business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More information is available at www.uscib.org.

Contact:
Kira Yevtukhova, USCIB
+1 202.617.3160, kyevtukhova@uscib.org

USCIB Opposes New IP Protocols at International Telecommunication Union

USCIB submitted recommendations on June 7 regarding industry priorities to the U.S. Department of Commerce’s National Telecommunications and Information Administration’s (NTIA) that advance international communications and information policies at the International Telecommunication Union (ITU), as well as on matters that will be addressed at the 2020 World Telecommunication Standardization Assembly (WTSA-20). Most notably, USCIB’s comments expressed deep concern over the proposed “New IP protocol system,” which would be composed of a suite of protocols following a top-down design.

“We urge the U.S. government to strongly oppose this proposal,” said USCIB Vice President for ICT Policy Barbara Wanner. “The proposal would deploy new protocols that would not be compatible with standards already used by billions of devices, so it would result in fragmentation of the current operation of the internet. In fact, creation of a new protocol and network architecture in the ITU is likely to create the same kinds of interoperability problems that the proposals ostensibly want to avoid.”

Another concern is that use cases envisioned by said protocol are not sufficiently developed to be standardized by the ITU. The proposals aimed at developing a new IP protocol system should remain within the realm of research where they can see experimentation and measurement, rather than moving precipitously to standards that industry is expected to implement. Additional concerns outlined in USCIB’s comments are past failures of similar type of monolithic top-down architectures and the fact that many of the challenges identified in the “New IP protocol system” have been addressed or are currently being addressed.

“In our view, it is not the ITU’s role to impose a single technology or approach on a global scale,” added Wanner. “To reiterate, we urge the U.S. Government to strongly oppose resolutions supporting a New IP. Other parties involved in standardization share our concerns.”

USCIB is committed to working with the U.S. Government to identify opportunities for constructive engagement that helps to advance U.S. policy objectives. In its recommendations, USCIB emphasized that inputs of all stakeholders produce a flexible policy environment critical to empowering the rapidly evolving digital economy; stakeholder inclusion can lower the risk of unintended consequences and increase legitimacy and adoption of policies. The turbulent economic and political backdrop caused by the COVID-19 pandemic makes such multistakeholder participation even more important to ensure that Internet policy remains grounded in sound commercial, technical, and human rights-related expertise.

Other recommendations outlined by USCIB included the need to ensure a resilient, secure and diverse 5G supply chain.

To view USCIB’s comprehensive comments and recommendations, please click here.