America has an “Ozzie and Harriet” corporate tax code for a “Modern Family” global economy. In this policy memo, we point to seven reasons we need to modernize the corporate code in order to compete, grow, and create American jobs.
The corporate code hasn’t changed since cell telephones were the size of toasters, but the world economy has. Goods, services, and capital are moving around the globe like never before. Countries like Brazil and China are nipping at our economic heels, and competitors like Germany and Canada have slashed their rates.
Even though our rates are high, revenue is relatively low. The way our tax code interacts with those in other countries creates an incentive for business to invest overseas. Its complexities mean some industries and companies pay more than others. What this all adds up to is a code that crimps business, fails to raise revenue, and most importantly, is a drag on economic growth and job creation.
By ensuring that our tax code is modernized to reflect current global competition for business, corporate tax reform can help to ensure that America maintains its competitive edge.
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