Getting the Facts Right is Essential to Tax Reform

By October 28, 2013Taxation

The Wall Street Journal has an op-ed out today that delivers a dose of reality to the argument that corporations are somehow not paying their fair share of taxes. Many in the media and numerous policymakers have erroneously jumped on a Government Accountability Office study looking at what the effective U.S. corporate tax rate is – a study that, as it turns out, was based on bad data and selectively chosen information.

The NAM has been a longtime advocate for comprehensive tax reform – a critical factor to resolving our fiscal problems and increasing competitiveness for business in the United States. Currently, the statutory tax rate in the United States is disappointingly the highest in the world – a distinction that we should take no pride in. Manufacturers and other businesses don’t plan their investments, job creation and efforts to grow based on a theoretical rate – they plan on what the tax code tells them. And right now, the tax code places a burden that puts manufacturers in the United States at a clear disadvantage compared to our international competitors.

We need policymakers to take action – the House Ways & Means Committee and the Senate Finance Committee have made positive steps toward the first comprehensive reform of our tax system since 1986 – we’re pleased that there seems to be an appetite to take up these essential reforms. Having the facts and circumstances facing manufacturers right will go a long way to making tax reform an effective part of the solution for our fiscal woes and increase competitiveness and growth in the U.S.

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