Rate Coalition Urges Congressional Leaders To Safeguard America’s Competitive Corporate Tax Rate

WASHINGTON, D.C. – The RATE Coalition, whose members and affiliates employ more than 55 million American workers in all 50 states, today called on Congress to protect and extend the pro-growth policies of the Tax Cuts and Jobs Act (TCJA) — specifically the 21% corporate tax rate that has spurred historic economic expansion and job growth and led to higher wages for American workers.

In letters to the House Ways and Means Committee Chairman and Ranking Member, and Senate Finance Committee Chairman and Ranking Member, the coalition touted the wide-ranging benefits of the landmark 2017 tax overhaul. 

“The 2017 tax cuts passed by Congress and signed into law by President Trump have been enormously successful in increasing investment, wages, and jobs in America. The corporate rate was reduced from the highest rate in the world to a much more competitive rate of 21%.” the letter states. “…Information from our member companies shows that the corporate rate cut enabled them to increase investments, bring capital back to the U.S., expand their small business suppliers, improve their supply chains, increase wages and benefits, hire new workers, and significantly expand their community and charitable contributions.”

The letter highlights several key achievements stemming from TCJA’s implementation:

  • A 20% increase in domestic capital investment in the two years following enactment
  • Real wage growth of 4.9%, the largest increase in 20 years and a $5,000 rise in real median household income
  • Corporate tax revenues 78% higher than pre-reform levels
  • Unemployment and poverty levels falling to the lowest levels in 50 years
  • Economic growth surging a full percentage point higher than the previous ten-year average

The letter urges the lawmakers to protect this pro-growth policy and warns that any increase in the corporate rate would harm American workers, businesses, and economic competitiveness. 

“We strongly believe that maintaining a competitive corporate tax rate is essential to the continued growth of the U.S. economy. Any increase in the corporate rate would be harmful to working people, American businesses, and the U.S. economy,”  the letter continues. “A higher corporate tax rate would hit American job creators large and small. One study found that more than one million small businesses would be hit by a higher corporate rate, causing a ‘disaster for small business.’”

The full letter to the House Ways and Means Committee can be accessed here and the full letter to the Senate Finance Committee can be accessed here.

Background: RATE Coalition members employ more than 55 million Americans working in all 50 states.  Our objective is to maintain America’s globally competitive corporate tax rate and create the best climate for our nation’s economy, job creators and workforce to succeed into the future. Learn more at RATEcoalition.com.

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