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September 23. 2014

ACT Responds to Treasury Announcement

Today, the Alliance for Competitive Taxation (ACT) released the following statement in response to the Treasury Department’s announcement regarding inversions:

“The U.S. tax code is broken and outdated and makes it harder for American workers and businesses to compete in the global marketplace. Other countries have already acted to make their tax codes more competitive, while the U.S. is still stuck with the highest corporate income tax rate in the developed world and an outdated international system. The only way to get out of the economic rut we are in is to address the root cause through comprehensive tax reform that makes our code more competitive. Focusing exclusively on inversions is a Band-Aid approach that won’t solve the underlying problem. We urge leaders in Washington to focus on tax reform that lowers the rate, ends tax breaks and preferences and establishes a modern, globally-competitive tax system that aligns the United States with the rest of the world. This approach will make the U.S. an attractive location for both U.S. and foreign company headquarters, and  will create jobs, spur economic growth and increase competitiveness for U.S.-based companies.”