Tax & Fiscal Policy

We’re not out of the woods on COVID-19, but we’re getting there. And as we emerge, we need an economy that grows and creates opportunity. That requires a reliable, consistent, and competitive tax code for America’s businesses. We have that now. Before COVID it created record low unemployment, higher wages, and brought business back to America. A tax increase will undermine our ability to compete internationally, slow recovery and set us back. 

As a result of tax reform, today’s U.S. corporate tax system is competitive with the rest of the developed world and encourages companies to invest in American workers, families and communities. This resulted in:

• The fastest two-year wage growth rate in 20 years,

• The lowest unemployment rate in 50 years,

• Better-than-expected growth in GDP and investment by American companies.

As other countries prioritize economic growth, the U.S. needs to keep pace with its global competitors. Doing so will require maintaining our competitive corporate tax environment to ensure America remains an attractive place for businesses to invest.

A 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.

 

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. 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.

98% of CEOs said that an increase in the corporate tax rate from 21 percent to 28 percent would have a “moderately” to “very” significant adverse effect on their company’s competitiveness.

78% of CEOs said that an increased tax burden on U.S. companies would negatively affect their company’s investments in R&D and innovation.

71% of CEOs said that an increase in the corporate tax rate would negatively affect their ability to hire.

Source: Business Roundtable CEO Survey | April 2021