The benefits to a strong, growing economy from a competitive U.S. tax system are in jeopardy. Prior to the pandemic, the current tax code helped lower the unemployment rate to a 50-year low and boosted wages and household incomes. Some in Congress are working to reverse these gains by raising corporate taxes—which will make U.S. companies less competitive globally and undermine investments in employees and communities. American workers—who are estimated to bear from 20 to 70 percent of the corporate tax burden through lower wages and reduced job opportunities—cannot afford a tax increase. 

America’s corporate tax system supports sustainable, long-term economic growth in four key ways:

  1. Keeps tax rates competitive for businesses, which leads to increased investment, higher wages and more jobs.
  2. Maintains a competitive global tax system that levels the playing field for U.S. companies operating globally.
  3. Incentivizes businesses to invest in their operations and research and development, leading to higher productivity and economic growth.
  4. Keeps businesses and jobs in the United States by reducing tax savings from inversions and foreign takeovers.

Business Roundtable opposes the sweeping tax increases on America’s businesses included in the Build Back Better Act, which amount to more than $800 billion. These tax increases would favor foreign competitors over American businesses and workers, and discourage investment at home. 

The Build Back Better Act:

• Puts U.S. businesses who employ tens of millions of Americans at a severe disadvantage compared to foreign competitors. 

• Undermines investment in America at the same time when the U.S. needs to spur private sector investment to keep pace with competitors abroad.

• Increases economic risk while American families and businesses are already experiencing the impacts of rising inflation. 

Tax hikes on America’s businesses will make it harder for them to compete against competitors in China and Europe – undermining innovation and growth here at home. 

Learn more about how higher taxes on America’s businesses would harm workers, job creation and U.S. economic competitiveness:

U.S. Competitiveness

In the third episode of BRT TV, the CEOs of Raytheon Technologies Corporation, Union Pacific Railroad, Gap Inc. and Dow explain how tax increases on U.S. businesses would undermine the competitiveness of the U.S. economy, businesses and American workers.