Trump Tax Cuts Kept American Companies and Jobs in America
December 27, 2024
Since the 2017 tax relief, no major American corporation has inverted overseas.
WASHINGTON, DC – The Trump tax cuts made America globally competitive which helped working families here at home keep their jobs and encouraged investments in forgotten parts of the country. The proof is in the pudding: under President Obama, 28 American corporations moved their headquarters and cash overseas to take advantage of lower foreign taxes. In the seven years since the Trump tax cuts took effect, no American corporation has inverted to put its headquarters overseas.
Pro-growth policies like a competitive corporate tax rate, incentives for U.S. companies to keep American intellectual property in the U.S., and tax reforms addressing revenue earned in foreign countries, made American workers and businesses more competitive around the world. If the Trump tax cuts expire, tax hikes on American businesses will encourage them to return to shipping investment and American jobs overseas.
House Ways and Means Committee Chairman Jason Smith (MO-08) released the following statement warning of the consequences to America’s competitiveness if the Trump tax cuts expire:
“President Trump was given a mandate to put America first again. A key part of turning that mandate into a reality is making this nation the best place in the world to build, invest, and create jobs. The Trump tax cuts ended the seemingly unstoppable trend of American companies shipping their money, jobs, and headquarters to foreign countries. Under President Obama, 28 U.S. businesses moved overseas. Under President Trump and the 2017 Trump tax cuts, that number dropped all the way to zero. Allowing the Trump tax cuts to expire will be the equivalent of handing foreign nations like China our wealth, tax revenue, and jobs. Congress must deliver on President Trump’s mandate and extend his successful tax cuts as soon as possible so American job creators have the certainty and incentive to grow and hire more here at home.”
Global Competitiveness Tax Team field event in Atlanta, GA. Members pictured above from L to R: Rep. Blake Moore (UT-01), Chairman Jason Smith (MO-08), Rep. Kevin Hern (OK-01), Rep. Ron Estes (KS-04)
Led by Rep. Kevin Hern (OK-01), the Global Competitiveness Tax Team is fighting to maintain and extend America’s competitive edge with other nations. In discussions with job creators around the country, the Committee has heard how the Trump tax cuts encouraged businesses to invest in workers and new operations here in the United States. At one meeting, a company shared that it had increased investment by $6 billion while adding more than 4,000 jobs. Similar stories from other businesses illustrate the positive effects generated by the international tax policy in the Trump tax cuts.
Spurring more investment in America led to higher tax revenue that exceeded projections. In the 5 years following the Trump tax cuts, tax revenues averaged $170 billion per year above the Congressional Budget Office’s (CBO) post-2017 projections. Corporate tax revenues alone for fiscal year 2022 and 2023 exceeded CBO’s projection by $103 billion.
For its part, the Biden-Harris Administration has been engaged in an effort to undermine America’s competitiveness by pursuing an unconstitutional ploy that would cost America tax revenue. Without consulting Congress, the Administration negotiated a global tax surrender of America’s sovereignty over our own tax laws, handing foreign competitors like China a competitive advantage, all with a $120 billion price tag. The global tax deal currently being orchestrated with the Organization for Economic Development and Cooperation permits foreign countries to impose unfair taxes on American workers and makes the United States less competitive. Ways and Means Republicans have made clear this deal will go nowhere, and the Committee has fought to halt this terrible economic policy. The potential expiration of the Trump tax cuts would only further disadvantage American businesses and workers against their foreign competitors.
