Published: October 12, 2012
Antiquated System Must Be Modernized
In an op-ed published in The Wall Street Journal today, Business Roundtable (BRT) President John Engler explained the facts about taxes paid by U.S. globally engaged companies:
“America’s corporate tax rate is too high and needs to come down. Who says so? President Barack Obama and Gov. Mitt Romney—and America’s jobs creators who believe lower rates are a necessity for economic growth.”
“A high corporate tax rate is not the only burden on doing business in the U.S. Also embedded in the tax code is an antiquated system that governs U.S. taxation of foreign earnings. … This ‘world-wide’ tax system has been in place since the establishment of our income-tax system in 1913.”
“[U]nder the current U.S. system … an American company … finds the Internal Revenue Service waiting with a big tax bill when the company tries to bring foreign earnings back to the U.S. … ecause America’s tax law requires the payment of an additional tax—generally the difference between the U.S. rate and the tax rate in the foreign market.”
“The dual components of corporate tax reform—a reduction in the U.S. corporate tax rate and a modernized international tax system like those of our trading partners—are crucial to regaining U.S. economic growth. … On that … Messrs. Obama and Romney should agree.”
Click here to read Engler’s op-ed in The Wall Street Journal.
Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies with more than $7.3 trillion in annual revenues and nearly 16 million employees. BRT member companies comprise nearly a third of the total value of the U.S. stock market and invest more than $150 billion annually in research and development – equal to 61 percent of U.S. private R&D spending. Our companies pay $182 billion in dividends to shareholders and generate nearly $500 billion in sales for small and medium-sized businesses annually.
BRT companies give more than $9 billion a year in combined charitable contributions.