The Time To Start Reforming Our Tax Code Is NowOctober 27, 2015
Congress has a number of urgent items to consider in the next few months – how to deal with the debt limit, how to fund the government, and how to fund our highway programs. For the sake of U.S. businesses and workers, there’s another urgent item that needs Congress’s attention sooner rather than later – tax reform.
Our tax code puts American workers and businesses at a real disadvantage. The United States has the highest corporate rate in the industrialized world, and, unlike most other countries, our government taxes American businesses when they try to bring their overseas profits back home. As countries from the UK to Japan have cut their corporate rates and eliminated these repatriation taxes, they are taking our jobs and investment.
As a result, the hard reality is that U.S. businesses are often much more valuable in the hands of foreign companies who can reduce their tax bills. That’s a big reason why foreign takeovers of U.S. companies doubled last year to $275 billion.