Tax Executives Institute Guideposts for Tax Reform II: February 13, 2013.

On February 13, 2013, Tax Executives Institute augmented its views on the tax reform debate through the release of "Guideposts for Tax Reform II," which, together with "Guideposts for Tax Reform" (released in October 2009), outlines a series of principles intended to inform a comprehensive examination of the U.S. tax code and assist policymakers as they confront the important challenge of business tax reform. Guidepost II, which is reprinted below, was developed by the Institute's Tax Reform Task Force, whose chair is John Mann. Eli Dicker, the Institute's Executive Director, coordinated the preparation of the paper.

Introduction

As the preeminent association of in-house tax professionals worldwide, Tax Executives Institute and its 7,000 members have a keen interest in both the process and substance of tax reform. Our members are employed by more than 3,000 companies in the United States, Canada, Europe, and Asia and are charged with complying with the tax laws --in the United States and throughout the world--on a day-to-day basis. We are proud of our record of working with Congress, the Treasury Department and Internal Revenue Service, as well as their counterparts around the globe, to improve both tax policy and tax administration.

In October 2009, Tax Executives Institute published "Guideposts for Tax Reform," outlining a series of principles intended to inform a comprehensive examination of the U.S. tax code and, in particular, to assist policymakers as they confront the important challenge of business tax reform. TEI's "Guideposts," attached hereto as Exhibit I, discussed the following principles:

1. U.S. Business Does Not Operate in a Closed System

2. The U.S. Corporate Tax Rate Must Be Competitive

3. The Tax System Should Generally Not Pick "Winners" and "Losers"

4. The Tax System Must Be Simpler

5. The Tax Laws Should Make the United States an Attractive Place for Business Regardless of Whether the Taxpayer is U.S. or Foreign-Owned

6. A Comprehensive Solution Is Necessary

7. Tax Compliance and Enforcement Processes Are Necessary to Ensure Compliance and Should Be Strengthened

8. The Budget Deficit Must Be Addressed.

   Since then, economic and political developments, both at home and abroad, have reinforced our conclusion that comprehensive tax reform is critical to future U.S. competitiveness. Our original guideposts remain central to that effort. We add the following additional principles to that list.

1. The Legislative Process Leading to...