mr. fryt, mr. schichtel and mr. heenan, i have a question for all of you. you were invited here today because you do represent capital intensive businesses that could be asked to consider trading off a substantial amount of tax benefit if there is a comprehensive reform plan put forward that could alter pretty dramatically the corporate tax rate, reduce it somewhat drastically. the committee wants to understand better how businesses such as yours evaluate those trade-offs. and that will be part of tax reform. now, i understand that we're not talking about details today, but especially with respect to choosing the right base broadening measures, could a revenue neutral reform package that reduces the corporate rate to 25% and moves to a territorial system, could that improve the competitiveness of your companies? if you each could just take a few minutes -- a few moments to answer that. >> my answer would be yes. at 25%, i think that's close to the oecd average, which is about 25% right now. and given our international competition, that's about where we need

mr. fryt, would you? >> i think the biggest one in that regard right now for us, some of these extenders, we actually have several of the extenders that apply to us. but the biggest one is probably expensing, deappreciation. that does have an impact. if we had that in there permanently, or in any of these, permanency and certainty i agree with you is almost paramount. as long as it's a good code. but it's very important to us. beyond that, i don't know that i would have any further comment. >> then again, i'm looking for examples that you see day in and day out that again are talked about, maybe creating more costs and problems than really the incentive or disincentive was worth in the first place. >> definitely. it comes up all the time. i had a conversation with my old boss who is now our president and chief operating officer about some activities that do qualify for the section 199 domestic production credit. and he was absolutely delighted and said fantastic. we're going bake this into our investment

mr. fryt, we begin with you. you're recognized for five minutes. >> thank you. good morning, chairman camp, ranking member levin, members of the committee. i very much appreciate this opportunity to appear before you today to discuss the importance of tax reform to fedex. we believe that reducing the u.s. corporate tax rate significantly to be more in line with the rest of the developed world is essential to overall economic and job growth, and will help our company continue to invest in critical infrastructure to compete in grow. before i delve into the details of how we analyze tax reform i would like to make a couple points about fedex and our business and our tax profile. with respect to our business, through our global x-men and transportation network we connect more than 90% of the world's gdp in 48 hours or less. so if a business of any size wants to send its product from beijing to buildings, or cleveland to cologne, we can do that for them without them having to invest billions of dol

. >> thank you very much, mr. fryt. mr. schichtel, you have five minutes. >> thaupg. chairman camp, ranking member levin and members of the committee, thank you very much for inviting me to share our views on corporate tax reform. i'm the senior vice president and chief tax officer for time warner cable. i'd like to first tell you about our business and the impact of taxes and tax policy on time warner cable. then i'll explain why we believe that less complexity and a lower rate will benefit our investors, employees and customers as well as the overall economy and americans at large. time warner cable is a fortune 150 capital intensive domestic company that provides high speed data, video and voice services to over 14.5 million customers. we have over 48,000 employees in 29 states. we offer our workers secure jobs and wages and benefit packages that are competitive and that support families, dreams and retirements. last year we hired over 7,300 people including hundreds of veterans. we are part of our nation's communications backbone that enables domestic companies to

would that be sufficient, mr. fryt and mr. schichtel, a 28% rate, and eliminate every expenditure on the corporate side. would that be enough to make us more competitive globally? >> i don't think it would, mr. kind. >> mr. schichtel? >> i agree with mike. >> well, then we're going to need to figure out a way to pay for the additional 3% to get to 25. if the proposition here is that we're going to go to the pass-through side, where a majority of entities are structured in this country, i don't think they're going to be that enthusiastic for pass-through entities, small business owners, s-corp.s, individuals to pay higher tax rate in order to pay for lower corporate tax rates in this country. that ain't going to sell politically in this country. so we're going to have to find a different revenue source then in order to get to the 25% if the goal is to make this deficit neutral. that's where it's going to get difficult. that's why you don't have a detailed plan from the majority on what specifically they're proposing because the