Noting the competitive disadvantage forced on U.S. companies by our nation’s high corporate tax rate, TCCRI asked members of the Texas Congressional delegation to take on significant reform of the U.S. corporate tax, including lowering the rate to 25 percent or lower.
The full text of the letter is below, and you may download a PDF copy here.
July 17, 2014
To Members of the Texas Congressional delegation:
Our nation’s high federal corporate tax rates place American companies at a competitive disadvantage in the global marketplace.
U.S. corporations are taxed at the rate of 39 percent—the highest rate of any country in the world. On average, other industrialized countries tax corporations at only 25 percent. Moreover, American businesses are taxed not only on their U.S. profits, but also on their overseas profits as well.
For companies that retain their operations in the U.S. and support thousands of domestic jobs, our current tax system leaves them at a significant competitive disadvantage compared to foreign corporations, which threatens U.S. jobs and creates negative incentives to domestic economic expansion. In short, our current corporate tax structure undermines economic growth.
While all sectors and industries are forced to shoulder the burdens of our uncompetitive tax rates, the problem is particularly acute for manufacturers, pharmaceutical companies, and medical device makers who have made large capital investments in the United States. For reference, please see the enclosed opinion-editorial authored by Senator Rob Portman and published by The Wall Street Journal on June 24. Senator Portman cites three examples: Medtronic, Eaton, and Anheuser-Busch. Walgreen Co. is considering a similar move, motivated by tax rates. Senator Portman makes three outstanding policy recommendations in his op-ed, namely lowering the U.S. corporate tax rate to 25 percent, or lower.
Comprehensive tax reform is a significant but necessary undertaking, and we appreciate all of the efforts of those who are working today to set the stage for positive change to effect economic freedom.
Thank you for your time and consideration, and for your honorable service to Texas and the United States of America.
TCCRI Executive Director