Business Roundtable

Washington – Business Roundtable President John Engler praised today’s release by Ways and Means Chairman Dave Camp (R-MI) of a corporate tax reform proposal that lowers the corporate tax rate and provides for a territorial system of taxation for foreign income of U.S. corporations.

“Corporate tax reform will directly benefit the American workforce.  By increasing the worldwide competitiveness of American companies and American workers, and attracting investment to the U.S., tax reform can be a tremendous jobs bill,” said Engler, who heads the association of chief executive officers of leading U.S.-based companies.

The United States today has the second highest corporate tax rate of any nation in the Organization for Economic Cooperation and Development (OECD) and is the only member of the G-7 without a territorial tax system. Moving to a territorial tax system like those in the rest of the world, would allow U.S. companies to expand into growing markets on a level playing field with their international competitors while encouraging U.S. companies to bring back their foreign earnings for jobs and investment in the United States.  The 10 percentage point reduction in the federal corporate tax rate will significantly enhance the attractiveness of the United States as a location for investment by both U.S. and foreign companies.

“This proposal marks a significant advancement for corporate tax reform that has the potential to bring the U.S. tax system much closer in alignment to the tax systems of other developed countries,” said the BRT’s Engler. 

“We believe that these significant gains in U.S. tax competitiveness can be achieved in a revenue neutral fashion in the short-term, while significantly aiding deficit reduction in the long-term.”

“This proposal will receive close review by all of our companies, and while some of its elements still need to be shaped it is a very encouraging direction.  We look forward to working with Chairman Camp and the Congress to enact corporate tax reform.  The sooner comprehensive corporate tax reform can be enacted, the better it will be for the economy,” Engler concluded.