Business Roundtable CEOs support sound public policy to defeat COVID-19, create American jobs and restore U.S. economic growth and competitiveness.

Tax and Fiscal Policy Economic Benefits of Tax Reform

The Congress and the President have delivered on significant investment in the United States increased wages and jobs, and economic growth. It’s now up to business to innovate and invest in workers to help our economy achieve its potential. The opportunity is great.

Mark Weinberger - Chairman and CEO, EY

The recent tax reform law was the biggest change to the U.S. tax system in 31 years. It lowered taxes on individuals and businesses, modernized the way international operations are taxed, and created powerful new incentives for investment in the United States. The reaction from corporations was immediate and positive, with dozens of companies announcing investments in their workforce and expansions of U.S.-based projects.

The full economic effects of pro-growth tax reform will likely take years to play out, as companies increase their investments in U.S. projects, technologies, and workers in the months and years to come.

Tax reform supports long-term economic growth in three key ways:

  1. Lower corporate and small business tax rates will lead to increased investment, higher wages, and more jobs.
  2. Allowing an immediate deduction for tangible property will incentivize businesses to invest in new machinery and equipment and lead to higher growth and productivity.
  3. Embracing a modern, territorial-type system of international taxation will make American companies more competitive and eliminate the lock-out effect that kept foreign earnings trapped overseas.

These three policies combine to help minimize tax considerations as an impediment to investing in the United States. A more competitive tax code increases the likelihood that new investments will be located in the United States, creating jobs, growth, new local tax revenue.

Tax Reform is Helping America Grow

Real impact for workers, families and communities.

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