April 27, 2007

                                   Re: Trans-Atlantic Tax Treaties

Dear Chairman Biden,

On behalf of the European-American Business Council (EABC), I respectfully ask for your expeditious consideration of and support for the ratification of international tax protocols with Denmark, Finland, Germany, Belgium, Norway, and Bulgaria.  These bilateral treaties, signed by the US Treasury Department and now awaiting Senate ratification, are generally consistent with the US model income tax treaty and with treaties that the United States has with other countries.  Most importantly, they are highly beneficial to American companies by promoting economic fairness, transparency and the elimination of double taxation. 

EABC is an alliance of 68 US and European-based global companies with significant trade and investment in the Trans-Atlantic region (see list below).  European companies today – many of whom EABC represents – account for 75% of total foreign investment into the United States.  With increasing economic interdependence and cross-border trade and investment among nations, the current tax system gives rise to instances of the double taxation of income and other financial inequities.  These amended treaties, meanwhile, contain pro-investment and pro-trade reforms of tax practices on both sides of the Atlantic. 

These tax treaties reflect careful, bipartisan work by the US Treasury Department and its EU counterparts.  They incorporate reforms that foster equitable two-way tax treatment, promote robust economic growth and build on the long-term investment partnership between America and the European Union. 

EABC member companies hope that your Committee can take timely action in May or June of this year on this important matter.  We would welcome the opportunity to testify should you find this beneficial.  Please do not hesitate to call upon us if we can be of any assistance in this matter.
Sincerely yours, 

 
Michael C. Maibach
President & CEO
European-American Business Council