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High Tax Rate Threatens to Stunt US Growth
August 8, 2011
If you've spent much time reading the news the past few days you already know that good news has been few and far between. Our credit rating has been downgraded because of unsustainable debt, the stock market has plunged as the world economic outlook remains uncertain, and the U.S. economy isn't growing fast enough to put a dent in unemployment.
But in an increasingly globalized marketplace, our pain can be other countries gain. Sadly, rather than attempt to alleviate the problem, Washington has only made it worse by maintaining the second highest corporate tax rate in the developed world. As the LA Times reported today,
Many major U.S. companies are making big plans to expand overseas even
as some of them announce new layoffs at home, and there's a chilling
reason why: They're beginning to give up on the American consumer as a
source of future growth.
If America wants to remain a viable destination for capital and hold its spot as the world's top economy, our elected representatives must begin to take steps to make our corporate tax code more competitive. While fundamental reform of the tax code may take time, there is a step Washington could take immediately to encourage businesses to bring money and investment back to our shores - a corporate tax holiday. Representative Kevin Brady's (R-TX) "Freedom to Invest Act" would do just that, allowing companies to repatriate foreign earnings at a rate of 5.25 percent for one year. Read more about NTU's efforts to support this bill by clicking HERE.
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