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Of Ove'rseas Executives • International Cr · T • Graduates Return for Their Silver Reunion 2 Taxing the Overseas Executive Professor Robert S

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Of Ove'rseas Executives • International Cr · T • Graduates Return for Their Silver Reunion 2 Taxing the Overseas Executive Professor Robert S .. , Inside .. , . • Tax problems ·of ove'rseas executives • International cr · t • Graduates return for their Silver Reunion 2 Taxing the Overseas Executive Professor Robert S. Tancer discusses the tax situation which affects AGSIM graduates working overseas 5 Special Report Economic problems prompt more attention to international credit, collection strategies 6 Speakers General Westmoreland talks to T-Birds; Behind the scenes with the Speakers Committee 7 News '55 T-Birds return to be honored Some '80 Thunderbirds with 1 TBird and 2TBird are, in front from left, Yoichi Kanai at their Silver Reul'lion; Ralph C. from Japanj Bruce Wilcox, who was ASLC president, from Californiaj Mary Quist, from Harpham, '49, named outstanding Washingtonj standing with Executive Vice President Berger Erickson is Pagnan Adama Kabore alumnus; New classroom building from Upper Voltaj and with Mabel Erickson is Mie Mie Myint from Burma. 10 Contacts Roster of resource persons and alumni association representatives 12 Update Keeping track of active T-Bird alumni Just Say AGSIM 19 iQue Pasa? Government official tells Washington, D.C., T-Birds about "export disincen­ By K. Jean Gilbert Hawkins The procedure for ordering a vehicle tives of international trade policy" By the time a graduate - a "Thun­ license plate also varies from state Inside derbird" or "T-Bird" - can finish to state, according to The Thunderbird Back saying the "American Graduate School magazine's informal telephone survey Cover Focus on Circumnavigators of International Management," a of five states - Arizona, California, business deal could have been con­ Illinois, New York and Texas. Front Cover photo: cluded. License plates using letters rather An AGSIM diploma is a ticket to travel the A popular - and quicker - way of than numbers are often referred to as globe. Numbering more than 14,000, AGSIM telling someone about your alma mater "personalized license plates" or, in alumni distinguish themselves with insignias in the Arizona desert that trains in­ Illinois, "vanity plates." Contact your such as the familiar T-Bird rings and with ternational managers is to call the local state department of motor vehicles more unusual attention getters such as a per­ school "AGSIM" and to say you're a for more information. sonalized auto license plate. Charles Mannel, "Thunderbird" or a "T-Bird." If Director of Career Services, promotes his you do order personalized plates favorite school with his personalized plate, And instead of telling someone in for your car, then you, too, will be pictured on this page and also on the cover. person, you may order personalized telling the world you're glad you are a Photo by Steve L. Hawkins, '80. vehicle license plates - like Executive T-Bird! Just like Berger and Mabel Vice President Berger Erickson and Erickson and Charles Mannel. Career Services Center Director Charles H. Mannel did - to tell other Volume 80, No.3 motorists about the graduate school THE you attended. The costs vary from state to state, THUnDERBIRD from a high of $50 plus $10 annual Quarterly magazine of the Alumni Office renewal in Illinois to a low $10 fee of the American Graduate School of Inter­ in Texas. New York will allow eight national Management, Glendale, Ariz. letters and! or spaces for your message Director and Publisher: Thomas Bria while California permits seven letters, Editor: K. Jean Gilbert Hawkins including spaces. Arizona, Illinois and Special Correspondent: Al Ilch Texas will only let a resident use six Staff: Catherine Benoit, Donna Cleland, letters maximum. Nevertheless, that Debra Dickson, Betsy Friebel, Margaret would permit an alumnus to order a Gumerlock, Steve L. Hawkins, Kathleen MacDonnell, Mary Motz and Sonya Varea license plate printed "AGSIM I" or Photographers: Michael Guay, K. Jean liT Bird 1." Someone in California, Charles Mannel, director of Career Services Gilbert Hawkins, Steve L. Hawkins, Kathleen according to an official at the Depart­ Center, with his trusty four-wheel drive ad­ MacDonnell, Steve McFarlane, Daniel ment of Motor Vehicles, already has a vertising his favorite school'~GSIM" Paseiro, Rene D. Pfalzgraf, Pierre Tissier license plate reading AGSIM. with the help of Thunderbirds . .. AGSIM and the Overseas Tax Situation The United States Congress initially by overseas workers. imposed taxes on US. citizens living 8) Treasury estimates of tax expendi­ abroad in 1926. Today the United States tures from Sections 911 and 913 over­ is the only major industrialized nation state the potential gain in revenue that taxes its citizens on salaries since they ignore the drop in corporate earned outside their own country. profit taxes when employers equalize According to a June, 1980, Chase the pay of overseas workers. Econometric Associates' report, "Eco­ 9) The impact of US. export com­ nomic Impact of Changing Taxation of petitiveness is greatest in emerging US. Workers Overseas," results of this market countries where such high­ policy include: value-added US. imports as construc­ 1) A high percentage of US. workers tion and engineering are reduced, abroad, in some cases as high as 50 along with the substantial volume of percent or more, are voluntarily and merchandise exports generated by involuntarily returning to the US. major projects. because of the tax. The overwhelming conclusion from 2) The return of American workers these findings is that the negative from overseas increases the domestic impacts of the change in taxes on US. work force, but does not increase the workers - on overall tax receipts, on Thomas Bria, Alumni Director number of domestic jobs, therefore exports, on domestic unemployment, domestic unemployment increases. and on other social and economic 3) The cost of maintaining US. work­ factors - are many times greater than current situation and committing the ers overseas has risen substantially the projected gain in personal taxes school to a vigorous policy of oppo­ due to the tax. Survey results indicate paid by overseas Americans. The long sition to it. Your help could make the that these costs add 2 to 10 percent term loss in global influence is, of difference in this session of Congress. to the cost of US. goods and services, course, immeasurable, but also of How about it, Thunderbirds? depending on the industry involved. concern. 4) The increased cost of employing Professor Robert Tancer has con­ US. workers overseas and the reduc­ tributed an article to this issue of "The tion in the number of US. workers Thunderbird" which is designed to overseas reduces the competitiveness be useful for your personal planning of US. services and goods abroad and and also to raise your consciousness results in a significant drop in exports. in this area. 5) Survey results and other analyses With the vast changes in Washington Thomas R. Bria indicate that the overall drop in real in recent months, the outlook for Director of Alumni Relations US. exports amounts to about five change in Sections 911/913 is better than percent. ever. The US. and Overseas Tax Fair­ 6) The drop in US. income due to a ness Committee (1101 15th St. N.W., five percent drop in real exports will Washington D.C., 20005) has been Dan Rostenkowski (Illinois) Chairman, House Ways and Means '- raise domestic unemployment by established for the sole purpose of 80,000 and reduce federal receipts working for a more favorable section Committee from personal and corporate income 911/913. The Committee feels that op­ 1102 Longworth Office Building taxes by more than $6 billion in 1980 - timism is justifiable at this time and Washington, D.C. 20515 many times the value of tax expendi­ solicits your support by writing to the Robert Dole (Kansas) tures under Sections 911 and 913. individuals listed below (with a copy to Chairman, Senate Finance 7) Reduced domestic income from your Congressmen) and giving your Committee lost exports cuts state and local cor­ support for a change in the law. 2227 Dirksen Office Building porate profits taxes by $700 million, Because of the adverse impact of Washington, D.C. 20510 and state and local personal tax current legislation on you and on the receipts by $100 million. Unemploy­ American Graduate School of Interna­ Donald Regan ment compensation payments increase tional Management, the Executive Secretary of the Treasury by some $200 million - more than the Committee of the Board of Trustees 1500 Pennsylvania Ave. N.W. total additional federal taxes paid has passed a resolution deploring the Washington, D.C. 20220 THE THUNDERBIRD, SPRING 1981 reassessment of the situation and a the residence requirements. simultaneous effort of exploring alter­ In only one instance is the taxpayer nate solutions. Somewhat on the defen­ able to elect these deductions or utilize sive - no doubt because of feelings a flat $20,000 exclusion and that is expressed prior to enactment of the Tax when his income has been earned in a Reform Act - the international busi­ hardship area camp. The law defines ness community began to champion an hardship area camp narrowly, as an approach based on expanding the area close to the job site where satisfac­ familiar system of deductions, an ap­ tory housing is not available and one in proach that would include as eligible which the employer provides the for deductions those items of special housing. expenses borne by overseas executives The Foreign Earned Income Act has as part of their special way of life. It not been received well by United States was believed that using deductions multinationals or their employees. would be more acceptable to Congres­ Deductions are simply not worth as sional critics of special privileges and, much to the taxpayer as the former at the same time, still offer meaningful exclusion. benefits to the taxpayers involved. The latter amount is eliminated from As a result of these considerations, gross income for United States tax Congress passed the Foreign Earned In­ purposes while the deduction merely come Act of 1978.
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