Group aims to lower corporate tax rate to bolster economy, create American jobs
WASHINGTON, Sept. 22, 2011 /PRNewswire-USNewswire/ -- A dedicated group of 13 companies and organizations announced at the nation's Capitol the formation of the "Reducing America's Taxes Equitably" (RATE) coalition to push for sound and equitable reforms to the U.S. corporate tax code. The group's mission is to restore America's competitiveness so the U.S. once again becomes a destination for investment, job creation and strong economic growth.
RATE member companies and organizations currently include: Altria Client Services, Association of American Railroads, AT&T, Boeing, FedEx, Lockheed Martin, National Retail Federation, Nike, Raytheon, Time Warner Cable, UPS, Verizon and Walt Disney. Dr. Elaine Kamarck, former advisor to President Clinton and Vice President Gore, and James P. Pinkerton, former advisor to Presidents Reagan and George H.W. Bush, will serve as RATE co-chairs.
"Our country continues to suffer in this stagnant economy; Americans can't find work and confidence is at near record lows. As we look to jumpstart our economy, major tax reform must be on the table," said RATE Co-Chair Elaine Kamarck. "In considering tax reform, two principles should guide policymakers: The reforms must contribute to job growth, and the reforms must improve fairness and transparency in the tax code. Lowering the corporate tax rate achieves both those objectives."
In the U.S., the corporate tax rate is 35 percent, the second highest in the developed world. Among other Organization of Economic Cooperation (OECD) countries, the average corporate tax rate is 25.3 percent.
"A lower corporate tax rate would benefit American workers, American consumers, American businesses, and the American economy," said RATE Co-Chair James P. Pinkerton. "America's corporate tax code suffers from too-high rates, too much complexity, and so makes us uncompetitive with our global partners and competitors. For the sake of our national economic and strategic future, it's vital that we create a more simplified corporate tax system that is fair, transparent, and most of all, pro-growth."
The RATE Coalition believes that a lower corporate tax rate would better allow U.S. businesses to compete in today's global marketplace. And the best means of achieving a more competitive tax system is through a direct reduction in the overall corporate tax rate.
In a newly released white paper written by Ernst and Young's Robert Carroll and Tom Neubig, they note, "There is a broad consensus that the U.S. corporate tax rate should be lowered. Both President Obama and prominent members of Congress have pointed to the importance of lowering the corporate income tax rate to improve the competitiveness of the United States. … A lower corporate income tax rate will spur additional investment and employment, and increase productivity, and ultimately, living standards."
Since 1992 the OECD combined average statutory corporate tax rate (excluding the US) has declined from around 39 percent to 25.1 percent today. The US combined statutory rate has remained stagnant since 1993. The US effective tax rate is the highest of the G7 countries, 7.5 percent above the average.
A lower corporate tax rate would benefit both national and international U.S. companies and would increase incentives to invest in the U.S., enhancing U.S. economic development and job growth.
For more information about the RATE Coalition, visit www.RATEcoalition.com.
To read the full Ernst and Young paper visit, www.ratecoalition.com/images/Studies/featured-study.pdf.
SOURCE RATE Coalition