The 2017 tax 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 business community’s reaction was immediate and positive, with dozens of companies announcing new investments in their workforce and expansions of U.S.-based projects.
The 2017 tax reforms were successful in driving economic growth in the United States. Historically low unemployment and strong wage growth led to one of the most robust periods of expansion in history. While the pandemic weakened our economy in 2020, the country can once again thrive and grow by maintaining its competitive corporate tax rate.
America’s competitive corporate tax rate supports economic recovery and long-term growth in three key ways:
- Lower corporate and small business tax rates leads to increased investment, higher wages, and more jobs.
- Allowing an immediate deduction for tangible property incentivizes businesses to invest in new machinery and equipment and lead to higher growth and productivity.
- Embracing our modern, territorial-type system of international taxation makes American companies more competitive and eliminates the lock-out effect that kept foreign earnings trapped overseas.
Our competitive tax code ensures that businesses continue to prioritize the United States as the primary location to create jobs. Their investments generate new local tax revenues and help provide for the future prosperity of American families. These considerations are needed now more than ever for a strong economic recover that is largely supported by a competitive tax rate.