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A Tax Code to Leapfrog America Back into the Lead Pack

February 23, 2017

House Republicans’ built-for-growth tax reform Blueprint takes historic action to provide America with one of the most competitive tax systems in the world. As Ways and Means Chairman Kevin Brady (R-TX) recently said at a conference on international tax competition:

“Our Blueprint delivers a tax code built specifically to leapfrog America from dead last among our global competitors back into the lead pack of the most pro-growth tax systems on earth.” 

Recently, the Tax Foundation graded our Blueprint using their International Tax Competitiveness Index, which ranks the tax competitiveness of all 35 countries in the Organisation for Economic Co-operation and Development (OECD). The results reinforce that our tax reform proposal – as a whole – will dramatically increase the competitiveness of our nation’s tax code. As the Tax Foundation explains: 

“If the U.S. were to enact this reform, the U.S.’s ranking would improve significantly on the Index. Our tax code would move from 31st place (out of 35 countries) to 3rd, just behind Estonia and New Zealand.”

Yes, you read that right. The bold changes in the House GOP tax reform Blueprint would leapfrog America from 31st to 3rd among OECD member countries – a group that includes most of our nation’s major international competitors.

How exactly do we accomplish this? According to the Tax Foundation, the greatest improvements are driven by the Blueprint’s historic reforms to America’s corporate income tax and our overhaul of the entire U.S. international tax system. These historic reforms include: 

  • Reducing America’s corporate tax rate from 35% (currently the highest in the developed world) down to 20% so that our businesses and workers can win worldwide and reinvest more of their earnings in creating American jobs.
  • Ending the “Made in America” tax and promoting true competition by, for the first time in our nation’s history, taxing all products sold in the United States at a low, equal business rate – regardless of where those products were made.

Each of these reforms makes our tax code simpler, more competitive, and more pro-growth. And, when all are taken together, our Blueprint as a whole delivers a tax code that will make America one of the most attractive places in the world for businesses to invest, hire, and locate their headquarters. 

Our aim with tax reform should not be to just get America back to the middle of the pack. House Republicans are striving to leapfrog America back into the lead pack – and keep us there. As the Tax Foundation makes clear, that’s exactly what our Blueprint would do.

CLICK HERE to learn more about how our built-for-growth tax reform Blueprint unleashes American competitiveness worldwide and grows jobs here at home.