Royce Statement on Job Creation

Statement

Today, Rep. Ed Royce (R-CA), a senior member of the House Financial Services Committee, issued the following statement during the hearing on "Legislative Proposals to Promote Job Creation":

"The future of US competitiveness is dependent upon us looking at the three glaring impediments to capital formation and economic growth -- unnecessary and duplicative regulation, excessive litigation and a convoluted tax code that results in the second highest corporate tax rate in the developed world.

"In terms of raising capital through IPOs, it is clear that we have lost ground over the years. In the early 1990s, American exchanges played host to half of the world's new public companies. Last year, U.S. exchanges hosted 171 of the 1,295 IPOs from around the world -- roughly 13 percent.

"As Mr. Weild notes in his testimony there has been a precipitous decline in the number of publicly listed companies on US exchanges as well, from 8,823 in 1997 to 5,091 at the end of last month -- a 42% decline. This is the definition of capital flight.

"When capital -- both human and financial -- can relocate anywhere around the globe with such ease, we must reassess the business environment we have created.

"I am grateful to the Chair for taking a critical first step in this endeavor. I look forward to the testimony of our witnesses."

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