Washington – Business Roundtable President John Engler made the following statement on inversions.

“Cross-border mergers in which an American company restructures its legal headquarters abroad – so-called inversions – are a symptom of both a failing tax system and failed leadership in addressing it. America’s business tax system has simply not kept up with the demands of today’s global marketplace. The reality is that 95 percent of the world’s consumers live outside the United States and foreign countries are competing harder than ever for business investment. 

“For years, experts have advised that the anti-competitive U.S. corporate tax system is costing the United States jobs, investment, and economic growth. The United States has the highest corporate tax rate in the developed world and is one of the last industrialized countries using an outdated international tax system – one that disadvantages U.S. companies seeking to compete in foreign markets and bring foreign earnings back to the United States for reinvestment at home.

“Business Roundtable agrees with the Administration that comprehensive business tax reform is the best way to address the concern with ‘inversions.’  The Roundtable has long advocated for tax reform to improve the investment climate, make the country more competitive, and create more jobs.  The President and Congress should work together on the specifics of this needed tax reform. Piecemeal legislative reactions on ‘inversions’ that come loaded with unintended consequences and fail to address the true anti-competitiveness of the U.S. tax system are not the answer.”