In a move designed to return overseas corporate investment to U.S. markets, Rep. Tim Scott (SC-01) introduced H.R. 937, the Rising Tides Act of 2011, which would significantly lower federal corporate tax rates. "Our current tax system is an unmanageable burden that is incompatible with long term growth for our businesses, both on our soil and abroad," Scott said. "We need a tax structure that rewards innovation and enterprise, encourages companies to locate in America, and enables our companies competing overseas to compete effectively."
Scott said that Americans are looking for tax relief and they need it now. "This legislation stands for the core economic belief that a lower tax burden will stimulate the economy and allow businesses to create jobs, creating a rising tide which in turn will lift all boats, making possible our greatest aspirations as a society."
American corporations are currently burdened by a 35% federal tax rate -- the second highest in the developed world. Making matters worse, American companies doing business abroad must pay U.S. taxes in addition to local taxes, a double tax burden that puts them at an unfair disadvantage. "H.R. 937 reduces corporate tax rates to 23% and allows for permanent repatriation of overseas profits, with a goal of heading towards a territorial system of taxation. This will incent companies to locate within our borders, thereby giving our companies the ability to compete abroad."
The Rising Tides Act currently has the support of the Republican Study Committee and one of the leading tax advocacy organizations, Americans for Tax Reform. With more than 60 cosponsors, the measure is expected to garner continued support throughout the House.
Pursuing pro-growth strategies will give businesses and individuals more certainty and freedom in their fiscal planning, thereby creating the conditions which allow our society to prosper. "Americans continue to hear our promise of job creation and an improvement in our economy. It is time to make good on our word. It is time to lift the boats of all Americans in the rising tide."