Washington, D.C. – As the nation marks yet another “Tax Day” we do so knowing that there is growing bipartisan support for meaningful and comprehensive tax reform in 2013. This starts with agreement that our tax system is broken and the status quo is failing our economy, businesses and mostly importantly our workers as the United States tries to compete in the global marketplace.
The next step will be to find consensus on what aspects of our tax code to reform first. To support U.S. competitiveness and job growth, we believe our leaders in Washington must enact a modern international tax system that strengthens America’s competitiveness in the global marketplace, promotes increased U.S. investment and protects America’s tax base.
Why start with our international tax system? Today is a good opportunity to step back and review the facts:
- The United States finds itself the only G8 economy that hasn’t yet modernized its international tax laws in order to attract more investment.
- The combined statutory tax rate for U.S. companies in 2012 stands at 39 percent, higher than all our international trading partners.
- According to a World Bank study of 183 countries around the world, the effective tax rate paid by U.S. companies is higher than 164 of our competitors.
- Our out-of-step international tax system imposes a toll-like charge that effectively locks out approximately $1.7 trillion in private capital.
- Furthermore, our international tax laws were last updated in 1960 when U.S.-headquartered companies comprised 85 percent of the world’s largest corporations. By 2010, only 30% of American headquartered companies were ranked in the top 20.
The global economy has changed, but our system of taxation hasn’t. We need to modernize our approach to not only provide a level playing field for American workers, but make America the best place to invest and hire in the world.
Without this overdue reform, the U.S. will continue to lose out to foreign competition and we’ll keep losing ground when next year’s tax returns come due. On Tax Day, we can all agree that something we can’t afford.
About the Let’s Invest for Tomorrow (LIFT) America Coalition:
LIFT America is a coalition of U.S.-headquartered companies, trade associations and economic stakeholders representing industries that are critical to the American economy. Coalition members share concerns that outdated U.S. international tax laws are threatening American competitiveness and reforms must be enacted to help U.S. companies sell more of their products and services around the world, while encouraging economic investment here at home. The coalition supports a modernized “Territorial 2.0” Tax System that strengthens America’s competitiveness in the global marketplace, promotes increased U.S. investment and protects America’s tax base. More information can be found at www.LIFTAmericaCoalition.org.
Media Inquires:
To schedule an interview with Spokeswoman Claire Buchan Parker, please contact the Coalition by phone: 855-207-5548 or email: LIFTAmericaCoalition@gmail.com.