Business Roundtable Submission on Tax Reform
United States Senate Committee on Finance
July 17, 2017
In response to Chairman Hatch’s June 16 request for recommendations for tax reform, this submission reaffirms Business Roundtable’s support for pro-growth tax reform. The nation’s tax system is in urgent need of reform to boost economic growth, global competitiveness for American companies, and bring about meaningful improvements in the incomes of American families through higher wages and more and better paying American jobs.
It has been over 30 years since Congress last undertook tax reform. Since that time, the world’s economies have become significantly more competitive and the U.S. tax system has become an anti-competitive drag on the U.S. economy. A recent Business Roundtable survey found that CEOs believe that tax reform is the single most effective action that Congress can take to accelerate economic growth. Seventy-six percent of the CEOs said that they would increase hiring at their company if the U.S. tax system is reformed.
Comprehensive tax reform for both individuals and businesses — including more competitive rates for non-corporate businesses — is fundamental to strengthening the U.S. economy, enhancing job creation, increasing wage growth, and ensuring that American workers and American companies can successfully compete around the globe. Tax reform should also be used to give a targeted boost to lower- and middle-income workers by expanding programs such as the Earned Income Tax Credit (EITC), which already provides a helping hand to more than 29 million workers. A comprehensive approach is the best way to create a modern, competitive tax system for both businesses and individuals. Business Roundtable calls for the following corporate tax changes:
- A corporate tax rate set at an internationally competitive level, and
- A modern international tax system (territorial-like) that permanently removes the penalty for returning foreign earnings to the United States, thereby aligning the U.S. system with the tax systems of our major trading partners.