All business outside the United States. There are some provisions like the r d credit and the production deduction that are part of u. S. Tax law. You would then add some back in for state and local taxes. At the end you come up to 29 . I just am curious why it is that you would pay even with the overseas profits, you would still pay a higher effective tax rate than motion other corporations. We do think that is significant, especially considering 65 of our business is or more than 65 is outside of the United States. When and how often since 1999 has the Internal Revenue service cadetted caterpillar. We are under continual examination, the irs literally sits outside my office in that time frame we have closed 99, two 2001, 2002, 2003, 2004, five what havent you closed, what year . The 2007 and later years are still under exam. Theyre still under examination. Uhhuh. You are under constant auditing from the irs. Yes, we are. And they have not claimed you were in violation of irs regulati
Thank you. A minute before the red light comes on on the timer you will see a light changed from green to yellow, giving you an opportunity to conclude remarks. Your written testimony will be printed in the record in its entirety. Please let your oral testimony to ten minutes. And i understand that you will be presenting the statement for caterpillar. Is that correct . Yes, i well. Please proceed. Good afternoon, chairman levin, senator mccain. Thank you for the average into the job. For the subcommittee today. My name is julie legacy, and i am the vicepresident of the finance Services Division of caterpillar which includes tax and accounting function. On my left is caterpillars director of global tax and trade robin baron, a 24 year caterpillar employee. On my right is right perkins, who retired in 2009 as one of our International Tax managers after 35 years of service debt. We are proud to represent caterpillar before you today. Caterpillar is a Great American company, and our reputa