April 1st marks the day Japan will lower its corporate tax rate, making America's 35 percent corporate tax rate the highest in the world. The average global corporate tax rate is 25 percent. According to research by the Heritage Foundation, reducing our corporate tax rate to 25 percent would create an average of 581,000 jobs annually from 2011 through 2020 and would raise a typical family of four's after-tax income an average of $2,484 per year. Congressman Westmoreland supports lowering our corporate tax rate. Below is his statement.
"Having the highest corporate tax rate in the world now puts our entire country at a competitive disadvantage with other countries and when you tax companies, it's the workers and consumers who suffer in the form of lower wages and a higher cost of goods. In fact, according to research by Ernst & Young, workers bear up to 75 percent of the burden of the corporate tax rate.
"But we can fix this by simply lowering our corporate tax rate to the world average of 25 percent. In a study by Lee and Gordon, Journal of Public Economics, lowering the corporate tax rate to the world average of 25 percent could increase economic growth rates by one to two percent. At a time when our economy is still working to pull itself out of a recession, that kind of economic growth could mean higher wages and more jobs. It is time that we finally reform our tax code and lower our corporate tax rate in order to keep the United States competitive and give our economy a much needed boost," stated Westmoreland.