Washington, D.C. – LIFT America strongly supports including international corporate tax reform in the upcoming budget talks. We are pleased that Secretary Lew has called for bipartisan progress to establish “a simpler, fairer, and more competitive business tax system in the United States.” This is critical to American competitiveness, as tax reform represents one of the most effective ways our political leaders can come together to foster economic growth, job creation and investment.
We are deeply concerned, however, that Secretary Lew’s recent comments on corporate tax reform did not recognize how our woefully outdated international tax code places globally engaged U.S. companies at a severe disadvantage in the U.S. and internationally. These American-headquartered companies are too critical to generating investment and jobs right here at home.
Our current tax code is fundamentally broken and its flaws extend well beyond tax breaks and loopholes. We are concerned about the Secretary’s proposal of using ”one-time” revenue to pay for infrastructure projects rather than using those funds to transition to a long-term sustainable tax system. U.S. tax law must be rewritten to bring down one of the highest corporate tax rates in the world and enable our companies to thrive and win customers around the world. This approach would increase taxes and only make business more difficult.
If the U.S. wants to attract increased investment, then our political leaders in Washington must move forward with comprehensive tax reform in 2014. And that reform effort must include transitioning the U.S. to a modern, hybrid international tax system – similar to the one used by our trading partners – that would promote U.S. investment, while protecting America’s tax base.
###
About the LIFT America Coalition:
Let’s Invest for Tomorrow (LIFT) America is a coalition of U.S.-headquartered companies, trade associations and economic stakeholders representing industries that are critical to the American economy. To strengthen American competitiveness in the global marketplace, the coalition supports a modern, hybrid international tax system – similar to the one used by our trading partners – that would promote increased U.S. investment, while protecting America’s tax base.
More information can be found at www.LIFTAmericaCoalition.org.