Yesterday, April 1st, Japan lowered their corporate tax rate, securing the United States the unenviable position of highest corporate tax rate in the developed world at 39.2%. Congresswoman Jenkins released the following statement to mark the occasion.
"We need to face the reality that America and our businesses, both large and small, are competing in a global marketplace. America must compete for investment and the corporate tax code, last overhauled in 1986, plays a major role in that contest. Simply put, increased investment means greater American manufacturing, American jobs and higher wages for American workers. Between 2000 and 2010, nine of our major trading partners have lowered their corporate tax rates and reformed their international tax code to unlock money trapped due to high taxes. Just last week, the United Kingdom announced its lowering its rate from 26% to 22% to send a signal that Britain is "open for business.' Our antiquated worldwide corporate tax system, which taxes international income twice, combined with our incredibly high corporate tax rate is hamstringing American businesses when we need them to be growing, thriving, and hiring."
"To those who argue that the large number of loopholes in the tax code makes the actual rate for many companies much lower, I would say that is a large part of our problem. The Government shouldn't be in the business of picking winners and losers through the tax code. It is essential that we close the special interest loopholes and lower the rate to a more competitive rate of 25%. The Ways and Means Committee has put forth a detailed discussion draft for the plan, and the Path to Prosperity Budget, that passed the House last week, charts the way towards the same end. We need to encourage our businesses to grow, expand, and bring their international profits back home. A reasonable and responsible corporate tax rate can be, and should be, an important tool in this process. "