COMMITTEE on WAYS and MEANS

Chairman Dave Camp

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Job Creators Have a Formula for Job Creation: Lower the Rates, Reduce Complexity and End Uncertainty

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Washington, Jun 2, 2011 | comments
Today, in a hearing in the Ways and Means Committee, job creators and tax experts discussed how today’s current tax system inhibits, rather than promotes, job creation.  Excerpts from witness testimony demonstrate that lower tax rates, more certainty and greater simplicity in the tax code are vital to a climate ripe for job growth and promoting U.S. competitiveness in the global economy. These issues must be addressed as part of comprehensive tax reform that benefits families, employers and the U.S. economy.

Lower Rate = More Job Creation

“So what can the United States do to encourage investment and job creation in the United States?  First, lower the corporate tax rate.  The United States need not have the lowest corporate tax rate in the world, but we should have a rate comparable to those of our trading partners.” (Judy Brown, Executive Vice President & Chief Financial Officer, Perrigo Company)

Act Now to Stay Competitive

“We believe that a concerted effort to enact a corporate rate reduction to ensure that the U.S. remains competitive and an attractive place to do business in the global marketplace needs to be made now.” (James Zrust, Vice President, Tax, The Boeing Company)

Uncertainty Decreases Investment

“[B]ecause there is so much uncertainty with respect to the interpretation of certain tax provisions or whether certain expiring tax provisions will be extended for the time period for which the investment is planned, many alternative scenarios may need to be evaluated.  This is very frustrating when management is trying to make an investment decision.  At times, these tax uncertainties could either delay an investment or cause the investment not to be made.”  (James Misplon, Vice President, Tax, Sears Holdings Management Corporation, testifying on behalf of the National Retail Federation)

Complexity Harms Job Creation

“[W]e as a country have been tinkering with credits and deductions that, while well-intentioned, have done little more than encourage complex tax planning.  Eliminating the bulk of deductions and credits in exchange for a lower corporate rate will keep U.S. companies competitive and create jobs.”  (Walter Galvin, Vice Chairman of the Board, Emerson Electric Co.)


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