Washington – A new Business Roundtable study quantifying the economic impacts of globally engaged U.S. companies found that in 2019, under current U.S. tax policy, these companies supported over half of all private sector American jobs and U.S. gross domestic product (GDP).
Globally engaged U.S. companies are U.S.-based companies with measurable operations in international markets. By competing globally, these companies create opportunity for small and medium-sized U.S. businesses and generate more capital and jobs in America.
- As of 2019, there were 4,838 globally engaged companies in the United States. Including direct, indirect and induced impacts, globally engaged U.S. companies supported 90.9 million jobs (51.4% of all U.S. private sector employment) and $10.5 trillion in GDP (56% of the U.S. private sector total) in 2019. These companies paid an average of $82,658 in wages and benefits to their American employees—which is well above the national average.
- Data show that globally engaged U.S. companies spent a total of $350.2 billion on research and development (R&D) in the United States in 2019, accounting for 71% of R&D by all U.S. businesses. These companies also invested $738.9 billion in property, plants and equipment in the United States in 2019, accounting for 40.9% of all U.S. capital expenditures.
- The economic impact of globally engaged U.S. companies is seen across the United States. Globally engaged U.S. companies are significant employers in all 50 states and directly or indirectly supported 1 million or more jobs in 27 states.
“These data demonstrate that when U.S. companies compete internationally, they create jobs, innovation and investment here in America,” said Business Roundtable CEO Joshua Bolten. “Current proposals to burden America’s biggest employers with increased taxes and more regulations would threaten these contributions, affecting American workers and consumers during an already tumultuous period. To ensure that globally engaged U.S. companies can continue to compete and win, policymakers and regulators should maintain a competitive tax and regulatory environment.”
View the full report here and a one-pager summarizing its key findings here.