Add Florida Democratic Senator Bill Nelson to the growing list of lawmakers who recognize that America’s corporate tax system isn’t helping to create American jobs.
In a speech Wednesday night, Senator Nelson laid out his thinking:
“Our corporate tax is too high and too complex, and it stifles competition. In fact, the United States has the highest statutory corporate income tax rate in the developed world.”
The tech sector couldn’t agree more.
American businesses compete in a worldwide marketplace. We need a world-class tax structure. Written largely in 1986, the outdated tax code has become an obstacle for today’s U.S. companies as they try to innovate and compete in a global economy.
The technology sector has long pressed Congress to retool the tax code. For more than a decade, we have urged Congress and the White House to enact a tax system that makes America more competitive and a magnet for business investment.
Senator Nelson’s points are right on. And he’s right about another thing – just like job creation is a bipartisan priority, tax reform should be one, too. Here’s more from his speech:
“Sen. Portman [R, Ohio] and I have talked about a reasonable, commonsense approach to tax policy that gives hope for a fundamentally reformed and modernized tax system that can function in the hyper-competitive 21st century. Reforming the corporate income tax would be a good place to start. In many areas, the tax code borders on incoherence.
“Our corporate tax is too high and too complex, and it stifles competition. In fact, the United States has the highest statutory corporate income tax rate in the developed world. It’s imperative to have a healthy, vibrant, private sector that creates new, well-paid jobs for American workers. Yet our international tax rules penalize American firms for bringing their overseas profits back to the United States to reinvest here at home.”
As the debate on tax reform comes into greater focus in Congress, we’ll continue to press for a modern system that places a priority on job creation here at home. After all, tax policies are economic development policies, and the U.S. approach should drive investment to the U.S., instead of encouraging investment in more tax-friendly nations overseas.
Tom Gavin is Vice President of External Affairs and Communication at ITI.