What Others Are Saying

There is wide support among policymakers and business leaders to enact comprehensive reforms that modernize the U.S. international tax system. This growing consensus encompasses bipartisan voices from across the political divide and economic stakeholders representing industries that are critical to the American economy.


President Barack Obama:

“We need an economy that’s based not on what we consume and borrow from other nations, but what we make and what we sell around the world. We need to make America the best place on Earth to do business. … Another barrier government can remove is a burdensome corporate tax code with one of the highest rates in the world.”

Rep. Paul Ryan (R-Wisc.), Chairman, House Committee on Ways and Means:

“[Our] tax code’s complexity distorts decisions to work, save, and invest, which leads to slower economic growth, lower wages, and diminished job creation. … By making the tax code more conducive to innovation and investment, we can stimulate job growth and get the economy back on the road to recovery.”

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“[I]t’s very clear our tax code is broken. We have the highest corporate rate in the industrialized world. We’re one of the few countries that taxes companies when they bring money back home.”

Sen. Orrin Hatch (R-UT), Chairman, Senate Finance Committee:

“Every industrialized country around the globe understands that tax rates can determine whether or not businesses succeed or fail. And America’s job creators know that to remain competitive abroad and create jobs here at home, we’ll have to radically reform our nation’s tax code, transition to a territorial tax system, and reduce our corporate tax rate to 25 percent.”

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“Many of us on the [Senate Finance] Committee believe that tax reform is no longer optional. Rather, it is essential to help get our economy moving again. … While there are many issues surrounding how society values resource allocations, there are striking areas of our existing tax system that need attention. For example, our statutory and effective corporate tax rate is far too high relative to our international competitors, which impedes the abilities of U.S. firms to compete.”

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“The combination of a high corporate rate, worldwide taxation, and the temporary nature of some tax incentives makes American companies less competitive when compared to their foreign counterparts. Tax reform should reduce burdens on businesses, large and small, to allow them to more effectively compete on the world stage.”

Secretary Jacob Lew, Department of Treasury:

“Our top priority is to strengthen the recovery by fostering private sector job creation and economic growth at a time when we must make sure our economy remains resilient to headwinds from beyond our shores. That means making it easier to sell American-made goods abroad and expand manufacturing in the United States.”

Former President Bill Clinton:

“Among wealthy nations, we now have the second-highest corporate tax rate in the world, and because of recent changes in other countries we’re now the only wealthy nation that taxes income earned overseas when it’s brought back home.”

Sen. Rob Portman (R-OH):

“We’re now living with an international tax code that is a relic of the 1960s.  It wasn’t even reformed in 1986 when the rate was lowered […] We’re looking at several decades, now, of tax policy that really is antiquated and doesn’t keep up with the times.”

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“Not only does the U.S. have the highest corporate tax rate in the developed world, but in contrast to most of its foreign competitors, which use a so-called territorial system, this rate is imposed not only on income companies make at home, but also on income earned around the world. Making matters worse, the U.S. only taxes foreign sales when companies repatriate earnings, providing a strong disincentive for companies to bring money home. As a result, $2 trillion that could be reinvested in the U.S. economy sits in foreign bank accounts or is spent in other countries, creating jobs overseas that should be here.”

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“Twenty-eight years ago, President Reagan signed into law comprehensive tax reform that boosted American businesses by allowing them to compete on a level playing field and eased the financial burden on American families. Now, almost thirty years later, our onerous and outdated tax code continues to force businesses to leave the U.S., taking American jobs with them. We can and must reform our tax code again so that we keep businesses and jobs here at home and provide relief to all Americans.”

Douglas J. Holtz-Eakin, President, American Action Forum

“[U.S. lawmakers] have to deal with the corporate tax code, which is the single most potent anti-growth tax. And we have the highest tax rate in the world. That is an invitation for bad growth performance and international competition.”

National Commission on Fiscal Responsibility and Reform (Simpson-Bowles Commission):

“…our method of taxing foreign income is outside the norm. The U.S. is one of the only industrialized countries with a hybrid system of taxing active foreign-source income. The current system puts U.S. corporations at a competitive disadvantage against their foreign competitors. A territorial tax system should be adopted to help put the U.S. system in line with other countries, leveling the playing field.”

The President’s Council on Jobs and Competitiveness (Jobs Council):

“Expansion abroad by U.S. companies is vital for establishing export platforms for U.S.-produced goods and expanding the scope of domestic investments in research and other high-paying headquarters operations — expansions abroad expand domestic operations. A competitive territorial tax system for the United States should broadly follow the practice of our trading partners and should not be designed to raise new revenue, or to destabilize the U.S. corporate tax base, but rather to make the U.S. tax system more competitive with its major trading partners.”

National Foreign Trade Council:

“The U.S. tax system has been the outlier in the world economy for far too long. Moving to a territorial tax system and reducing the corporate tax rate will allow companies to grow in the United States, and will also attract more in-bound investment, leading to more jobs.”

Tax Foundation – A Global Perspective on Territorial Taxation:

“It is not by coincidence that the territorial system has gained so many adherents; it provides very real economic advantages over its worldwide counterpart. In the case of the U.S., a transition to territorial taxation would free the $1.7 trillion dollars currently locked out of the U.S, place U.S.-based companies on equal footing with competitors in every market, reduce complexity and compliance costs, reduce the incentive to reincorporate abroad, and could be accompanied by improvements to anti-abuse protections.”

The Business Roundtable – A CEO Plan for Jobs and Economic Growth:

“…the adoption of a territorial tax system will increase the incentive for companies to incorporate in the United States, allow U.S.-headquartered companies to compete more effectively in foreign markets, and encourage existing U.S. companies to bring home their earnings from overseas and reinvest them in the United States.”

National Association of Manufacturers (NAM) – Thriving in an International Economy:

“Moving to a territorial system like those used in most of the rest of the world will allow U.S.-based companies to be more competitive. If U.S. companies cannot compete abroad, where 95 percent of the world’s consumers are located, the U.S. economy will suffer from both the loss of foreign markets and domestic jobs that support foreign operations.”

Information Technology Industry Council (ITIC):

“ITI advocates for tax reform that levels the international playing field. We consistently have urged the federal government to enact a tax system that makes America more competitive and a magnet for job creation and business investment. In working with Congress, ITI seeks to lower the corporate rate in a fiscally responsible manner, move to a territorial system that keeps job creators from being taxed twice on their earnings, and make permanent incentives for breakthrough research and development. These pillars will help to spark job creation and innovation throughout the U.S. economy.”

TechNet President and CEO Rey Ramsey:

“Fixing the tax code helps businesses large and small. American companies that operate globally directly sustain more than 22 million U.S. jobs and 41 million indirectly. The average U.S. company operating globally buys $3 billion in goods and services from small businesses here at home, with a cumulative impact of more than $1.52 trillion. Ending the double-taxation on profits earned by multinationals overseas will result in greater partnerships and opportunities for small businesses here at home.

 

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