Tax and Fiscal Policy Competitiveness

For decades, the United States had an uncompetitive tax code that disadvantaged workers and businesses. The outdated U.S. international tax system and high corporate income tax rate were major roadblocks to economic growth. Because of an uncompetitive tax code, more than 4,700 companies were lost from the United States from 2004 to 2016.

Thanks to tax reform, our tax code is no longer an economic impediment. The tax law includes:

1. A corporate income tax rate that is competitive with the rest of the developed world,
2. A territorial-type international tax system that incentivizes companies to invest in the U.S., and
3. Tax relief for American families.

The full economic effects of tax reform will take years to play out, but it is already making a difference for America’s workers, families and communities. Immediate benefits of the tax law include increases in wages and benefits for workers, expansion of capital expenditure plans, and investments in workforce training and philanthropy.

"There are companies all around the world who are looking at the U.S. now and saying, ‘This is the place to be in the developed world,’”

-Stephen Schwarzman, Chairman, CEO and Co-Founder of the investment firm, Blackrock."

The United States has 47 fewer companies on the Global Fortune 500 list than it did in 2000, as other countries reformed their tax systems and grew in power and influence. Tax reform is now spurring investment and growth here in the United States.

EY Report: BUYING & SELLING: CROSS-BORDER MERGERS AND ACQUISITIONS AND THE U.S. CORPORATE INCOME TAX