The RATE Coalition Today Issued The Following Statement:
We applaud President Trump’s proposal to remake our tax code to encourage economic growth and job creation and bring a major improvement over the status quo, which incentivizes companies to move overseas to escape the crushing U.S. corporate tax rate, which is the highest in the world.
RATE Coalition member companies pay these high taxes – an average effective tax rate of 32 percent. We have thus seen what the anti-competitive U.S. tax rate has done to our own economic activity. It has handicapped us against our international competitors; it has made it more difficult to invest in our American operations; it has limited the value we can create for our shareholders; and it has made it harder to invest in our employees.
We believe that the President’s proposal could spark an economic boom, enabling us to create better jobs, a higher standard of living, and make American companies — including RATE member companies — much more competitive in the global marketplace. We also believe that, in the long run, the President’s proposal would stop the steady erosion of America’s corporate tax base. In other words, corporations would stop fleeing America in pursuit of a more favorable tax rate, and will instead either stay here or come back home.
We understand that the President’s proposal is one step in what will be a long and challenging task – after all, it is very clear that tax reform is not easy. We look forward to being ready partners with both the Executive and Legislative Branches, as it is imperative that we fix America’s tax code now. We will do all that we can to help move this process forward on behalf of all the hard-working Americans who are employed by RATE Coalition companies, igniting economic growth and jumpstarting job creation for the next generation of business leaders and entrepreneurs.