People love to compare the U.S. and U.K. – we say “fries, elevator and apartment” and they say “chips, lift, and flat.” The differences in the way we turn a phrase is amusing – the way we differ in our approach to corporate tax policy is hardly so.
Today the U.K. announced it is reducing its corporate tax rate to 20 percent – exactly half of the U.S. rate. In fact, the U.S. maintains the highest corporate tax rate in the world among developed nations – a first place finish no one should be proud of. Given the reasons our nations separated, the irony of being envious of tax policy in the U.K. should not be lost on anyone, least of all our policymakers.
A major part of pro-growth policy is competitive tax policy – and with every day that the U.S. corporate rate is the world’s highest, the rest of the world is passing us by.
It’s far past time that we reformed our corporate rate to a level that will attract investment and growth. It’s a major piece of the puzzle to achieving a manufacturing resurgence and, as a result, an economic resurgence as well.
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