April 1 might be April Fools’ Day, but with the highest corporate tax rate in the industrialized world, American employers and their workers aren’t laughing. A look around the globe makes it clear – while countries like Japan, the United Kingdom and Canada all lowered their corporate tax rates in 2012, America’s corporate rate remains the highest in the industrialized world at 35 percent. Capital is mobile, and America’s high rate and outdated international tax code threatens our competitiveness in the global marketplace.
American job creators agree. In a letter to Congress, leaders in the retail, aerospace, telecommunications and other industries called on Congress to act now on comprehensive tax reform and highlighted the problems with the current code: “Coupled with our complicated tax system, this rate makes American businesses less competitive and makes the U.S. a less attractive place for investment, ultimately harming businesses, investors, workers and consumers.” That is no joke. Comprehensive tax reform that lowers rates and makes the code simpler and fairer for families can strengthen the economy and lead to higher wages for hardworking American taxpayers.