Washington – Mark A. Weinberger, Global Chairman and CEO of EY and Chair of the Business Roundtable Tax and Fiscal Policy Committee, today issued the following statement regarding the Senate Permanent Sub-committee on Investigations hearing on the impact of the U.S. tax code on the market for corporate control and jobs.

"Today's hearing provides additional evidence that the U.S. economy is hamstrung by an environment where U.S. businesses are disadvantaged by an out-of-date and uncompetitive tax code.  The United States has the highest corporate tax rate in the industrialized world and its international tax rules are a relic of the 1960s. Business Roundtable urges Congress and the Administration to work together now to consider the necessary tax reforms to increase U.S. investment and to maintain and attract jobs, including a competitive corporate tax rate and a modern international tax system.

“While America stands still, other countries are modernizing their tax structures.  Inaction has consequences in our vibrant global marketplace. In fact, in the last 10 years the United States experienced a $179 billion net loss of American companies and business assets.

“We need to regain our competitiveness, and a 25 percent corporate tax rate and competitive international system would help get us there. A rate of 25 percent would have shifted approximately $769 billion in assets from foreign countries to the United States over the past decade, and prevented the foreign purchase of 1,300 American companies. We appreciate PSI Chairman Portman shining a light on the cost of inaction and look forward to working with him on tax modernization efforts that level the playing field for U.S. businesses."

In March, the Business Roundtable released a review by accounting firm EY of more than 25,000 cross-border merger and acquisition transactions, which revealed how uncompetitive the American tax code truly is for companies large and small. In fact, companies and assets valued at less than $29 million make up half of the cross-border M&A market.

Business Roundtable earlier this year released an economic growth agenda that includes tax reform, expanded trade opportunities, immigration reform, fiscal stability and infrastructure investment, Learn more about Business Roundtable here and our 2015 growth agenda here.