Sen. Jeff Sessions (R-AL), the ranking member of the Senate Budget Committee, spoke directly to the issues of competitiveness and global tax rates at a committee hearing Wednesday, “Tax Reform: A Necessary Component for Restoring Fiscal Responsibility.”
We have, even in real rate terms, one of the highest, if not the highest corporate [tax] rate in the developed world. Corporations are making decisions every day: where to expand, where to hire workers…
This is not academic. This is going on every day. We have an unemployment rate that is unacceptable and to have the highest corporate tax rate virtually in the world — and other nations are seeing the light in reducing it — and we remain high?
So even if we eliminate certain deductions and have a flat rate that appears lower, it seems to my simple mind that we’ve got no less real burden on the corporate community than we had before.
I believe we need to simplify, but I also think it would be a big mistake if we don’t reduce the rates. The U.K. is reducing their rates, Canada I understand is going to 16 percent, so if we’re at 28, 27 [percent] after we’ve adjusted, we’re still way above that and a company making a decision of where to produce a product might well choose another country than our own country to produce that product and cost us jobs…
The entire world is recognizing that the corporate rate is a job factor, a big job factor.
A hat tip to Andrew Stiles at NRO’s The Corner.
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