Published: January 20, 2011
Washington – Today, Robert A. McDonald, Chairman of the Board, President and Chief Executive Officer of The Procter & Gamble Company and Chairman of Business Roundtable’s Fiscal Policy Initiative, testified before the House Ways and Means Committee and released the following statement:
“American companies produce the most innovative products in the world and – given a level playing field – will go head-to-head against any competitor. But we are handicapped by an antiquated and uncompetitive corporate tax system that undermines America’s economy and American jobs.
“Since the last comprehensive reform of corporate taxes in 1986, the world has changed dramatically and U.S. companies and workers face a far more competitive global economy. But our tax system has failed to keep pace. The United States will soon have the highest rate among all developed countries and has a non-competitive international tax system.
“We need a tax system that addresses today’s hyper-competitive global marketplace. The tilted playing field created by our current system hurts the competitiveness of American companies, restricts exports of U.S. goods and services, discourages investment in America and hinders expansion of U.S. business operations. This results in lower wages for American workers and slower economic growth.
“Done correctly, comprehensive reform can increase the competitiveness of worldwide American companies – which are responsible for 63 million U.S. jobs – and, in turn, promote more and better paying jobs, enhanced U.S. investment and strong, sustained growth. We will continue working with the committee, Congress and Administration to develop bipartisan proposals for a competitive tax framework consistent with the realities of the international economy.”
Business Roundtable is an association of chief executive officers of leading U.S. companies with nearly $6 trillion in annual revenues and more than 13 million employees. Business Roundtable member companies comprise nearly a third of the total value of the U.S. stock markets, invest more than $114 billion annually in research and development – nearly half of all private U.S. R&D spending, pay more than $179 billion in dividends to shareholders and the economy and play a significant role in the competitiveness of small businesses, serving as key customers of their goods and services and providing them with access to world markets.
Business Roundtable companies give more than $7 billion a year in combined charitable contributions, representing nearly 60 percent of total corporate giving.