Foreign Direct Investment

US subsidiaries of companies headquartered abroad (what the Organization for International Investment calls “insourcing” companies) play an important and positive role in the American economy.  These subsidiaries employ 5.5 million Americans and support an annual payroll of $403.6 billion – with average compensation per worker of $73,124, which is 34.7% higher than compensation at all US companies.  SCOA supports the non-discriminatory treatment of insourcing companies in the US legislative and regulatory processes.

Some topics of interest to SCOA:

Campaign Finance

The US Supreme Court decision in Citizens United vs. Federal Election Commission has led some to assume that “foreign” corporations can now influence the US political process.  This interpretation is inaccurate and misleading.  The Citizens United decision does not impact rules already in place that prohibit foreign persons and corporations from making political contributions.  Still, some lawmakers have called for restrictions on US subsidiaries of companies headquartered abroad.  US subsidiaries of global companies are American companies in every sense of the word, especially in the contribution they make to the US economy and their local communities.  Any effort to selectively limit the rights of one group of American businesses and individuals is inappropriate and should be opposed.


Over the last 20 years, insourcing companies have been a consistent and reliable source of American employment.  Inbound investment is vital for continued American competitiveness and new jobs.  Maintaining fair and non-discriminatory treatment in the tax code for insourcing companies is key to investment in the United States.

 SCOA believes the US tax system should impose taxes fairly and equally on all US businesses regardless of where their parent company is headquartered.

To comment, or if additional information is needed on a particular topic, please do not hesitate to contact the SCOA Washington office.  We also encourage SC group company employees to download the latest Washington office publications on foreign direct investment, located in our online resource library at:

To request a log-in and password, please contact the Washington office at washingtonoffice.scoa (at)

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