American Competitiveness Could Get Much Worse Without Congressional ActionOctober 7, 2015
When it comes to creating a competitive business environment, the United States already faces an uphill climb thanks to our outdated corporate tax policies. What many Americans may not realize is that things are about to get much worse.
The United States corporate tax rate of 35 percent is the highest among developed nations, and has prevented many American companies from bringing their international earnings home. Now, foreign governments are eyeing these earnings with plans to impose their own taxes on it. Even worse for the American economy, these countries are readying new policies designed to lure American innovation, earnings and jobs overseas.
On Monday, the Organization for Economic Co-operation and Development issued new international tax recommendations under its Base Erosion and Profit Shifting (BEPS) project. BEPS is expected to have numerous impacts, but there are two that should concern most Americans.