What Others Are Saying

President Barack Obama“I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years” President Barack Obama, State of the Union Address, January 2011

 

Senator Max BaucusThere is still more work to be done to responsibly cut our debt in a way that doesn’t impede our economic recovery. The lackluster economic growth we’re seeing shows we must simplify the tax code. We need a pro-growth code that closes loopholes while giving America’s businesses the certainty they need to compete globally and plan and expand operations. Mr. Lew, you said you were willing to take on tax reform, and this committee will hold you to your word. It’s all about finding common ground so we can move forward together.” Senator Max Baucus, Quoted in Finance Committee Hearing, April 11, 2013

 

Rep Dave Camp“Our ‘worldwide’ system of taxation is a remnant from the Cold War: While it has been 25 years since Congress reformed the tax code, it has been almost 50 years since it undertook a bottom-up review of our international tax laws. In other words, our international tax rules were written when the United States accounted for 50 percent of the global economy and had no serious competition from others.” House Ways and Means Committee Chairman Dave Camp, Press Release, October 26, 2011

 

Rep Dave Camp 2“The second principle is to level the playing field for U.S. employers. The current U.S. corporate tax rate is the highest in the world. Yet in recent years, some of America’s largest corporations have paid zero tax. The current system picks winners and losers and puts the U.S. companies at a disadvantage in the global economy, a situation that hurts job creation. Tax reform must make our companies more competitive in the global economy.” Senate Finance Committee Chairman Max Baucus and House Ways and Means Committee Chairman Dave Camp, Wall Street Journal Editorial, April 7, 2013

 

Senator Mitch McConnell“We do need to reform the whole tax code. We’re in favor of that. It’s been 25 years since we actually reformed the tax code. As of today, we have the highest corporate tax rate in the world… All that does is make our companies uncompetitive.” Senate Minority Leader Mitch McConnell, State of the Union on CNN, April 2012

 

Speaker John Boehner“We have to have a real solid, pro-growth economic plan. Our tax system gets in the way of economic growth. It’s why Republicans want to overhaul the tax code, both on the personal side and business side. Bring down the (corporate) rate to 25%. Do this by eliminating loopholes, special carve outs and deductions in order to bring the rate down. It would make our companies more competitive in the world economy; it would spur economic growth.” Speaker of the House John Boehner, FOX Business, May 10, 2012

 

Rob-Portman“The President and the new Congress have an opportunity to do something big and bipartisan on tax reform, if we remain focused on the goal of job creation. Tax reform done right is a surefire way to boost U.S. competitiveness and reduce the deficit through growth.” Senator Rob Portman, POLITICO, January 17, 2013

 

Senator Rand Paul“In the United States, you find this. High tax states like Illinois and California are seeing people leaving in mass exodus. We have a corporate income tax here that is 35 percent. There’s one that’s 15 percent in  Canada. If you have a new company you want to open up, where would you rather open up? In a country with a 35 percent income tax or 15 percent?” Senator Rand Paul, Fox News, December 19, 2012

 

Secretary Tim Geithner“The goal is territorial… Maybe 95 or 96 percent…We are prepared to move off decades of Democratic orthodoxies. Complete territorial we may not be able to get. But we’re going to get close and we can work with you on that.” U.S. Secretary of the Treasury Timothy Geithner, Quoted in Bob Woodward’s book The Price of Politics, September 2012

 

iStock_000014653028Large[1]“Many Council members agree that the U.S. should shift to a territorial system of taxation in order to make America more competitive in global markets. While most other developed nations have adopted territorial systems that exempt most or all foreign income from taxes when they are repatriated, the U.S. subjects all worldwide earnings to the corporate income tax when they are brought home to the U.S. This approach actually encourages U.S. companies to keep their earnings abroad rather than investing them here at home. Adopting a territorial tax system would bring us in line with our trading partners and would eliminate the so-called “lock-out” effect in the current worldwide system of taxation that discourages repatriation and investment of the foreign earnings of American companies in the U.S. The President’s Council on Jobs and Competitiveness (Jobs Council), Recommendations to Reform the Outdated Tax System to Enhance American Competitiveness, January 2012 

 

Simpson Bowles“Reform of the corporate tax structure should include the following:  Move to a competitive territorial tax system. To bring the U.S. system more in line with our international trading partners’, we recommend changing the way we tax foreign source income by moving to a territorial system.  Under such a system, income earned by foreign subsidiaries and branch operations (e.g., a foreign-owned company with a subsidiary operating in the United States) is exempt from their country’s domestic corporate income tax.  Therefore, under a territorial system, most or all of the foreign profits are not subject to domestic tax.  The taxation of passive foreign-source income would not change.  (It would continue to be taxed currently.)” Simpson Bowles Committee, The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform, December 2010 

 

US Capitol Dome“Require the Finance Committee to report tax reform within six months that would deliver real deficit savings by broadening the tax base, lowering tax rates, and generating economic growth as follows: Establish a single corporate tax rate between 23 percent and 29 percent, raise as much revenue as the current corporate tax system, and move to a competitive territorial tax system.” Senate Gang of Six – Sen. Mark Warner (D-VA), Sen. Dick Durbin (D-IL), Sen. Kent Conrad (D-ND), Sen. Saxby Chambliss (R-GA), Sen. Mike Crapo (R-ID), Sen. Tom Coburn (R-OK), A Bipartisan Plan To Reduce Our Nation’s Deficits, July 2011

 

Senator Ron Wyden“And much again of the more complicated approaches are going to be hard to do. Senator Gregg and I — I’ll wrap up with this Mr. Chairman, Senator Gregg and I probably spent a gazillion, gatrillion hours, barely an exaggeration — looking at this territorial issue. And I continue to be open to it.” Sen. Ron Wyden (D-OR), Committee On The Budget, U.S. Senate, Hearing, September 15, 2011

 

Former Senator Judd Gregg“It would be one step on the path to getting American funds in American hands. But, it should only be the first step. It should be followed by moving to a full territorial tax system, a system that would make it possible for America to benefit from our ever-growing position in international commerce. Two trillion dollars is a lot of money to be leaving on the table — or, in this case, on foreign shores. Our nation could use it much more effectively.” Former Senator Judd Gregg, The Hill, March 4, 2013

 

Rep Jim Clyburn“If you go down to 26 percent and close up the loopholes, then I think we can have positive revenues coming from it.” Assistant Democratic Leader Representative Jim Clyburn, Associated Press, May 30, 2011

 

 

US Capitol Dome“To compete internationally, we need to lower the marginal corporate tax rates and create a system that spurs the creation and retention of new intellectual property (IP) intensive and highly technical jobs while also bringing back to U.S. soil manufacturing jobs that have been sent overseas. To do this, we should ease access to capital by encouraging U.S. companies to bring home more of their earnings to invest those dollars in domestic job creation. By lowering corporate rates to a competitive level internationally, we can also reduce or remove tax benefits that add further complexity and encourage multinational companies to keep their money abroad or defer paying U.S. taxes.” Representative Jim Himes (CT-4), Representative Jim Cooper (TN-5), Representative Terri Sewell (AL-07), New Democrat Coalition Principles for Comprehensive Tax Reform 

 

Paul Weinstein“One way to create an environment favorable to all businesses is to reduce the disparities created by the tax code. That is why we recommend you seek legislation to create a loophole-closing commission (comparable to the commissions that have handled the similarly thorny political task of closing military bases), with a mandate to cut the corporate tax structure down to a single low rate.” Paul Weinstein, Progressive Policy Institute & Johns Hopkins University, January 15, 2009

 

Matthew SHay“The National Retail Federation and our members have long advocated for comprehensive tax reform that includes broadening the base and lowering rates so that American businesses, which pay the highest corporate tax rates in the world, can compete on a level playing field in the global marketplace.” Matthew Shay, President & CEO of National Retail Federation, Press Release, December 12, 2012

 

John Engler“According to J.P. Morgan, U.S. companies today control $1.7 trillion in foreign earnings held outside the U.S., earnings they don’t plan to repatriate. If the U.S. were to adopt a territorial system, it would eliminate the tax barrier that discourages American companies from bringing their money home where it could be used for capital investment, R&D dividends or other ways to support economic growth.” John Engler, President of Business Roundtable, Wall Street Journal, October 11, 2012

 

Arthur Laffer“And for President Obama, lower corporate tax rates could create the millions of new middle-class jobs he’s promised to deliver in his second term — without any new government departments, commissions or appropriations. In fact, the move would actually return money to the Treasury.” Arthur Laffer (pictured), John Martilla and Grant Watkinson, USA TODAY, March 10, 2013

 

George Osborne“By 2014, Britain will have a 22% rate of corporation tax. The biggest sustained reduction in business tax rates for a generation. A headline rate that is not just lower than
our competitors, but dramatically lower. 18% lower than the US… An advertisement for investment and jobs in Britain.” British Finance Minister George Osborne, Budget Address, March 21, 2012

 

Mieko Nakabayashi“With most of the world — Japan included — cutting corporate tax rates and employing territorial tax systems to remain competitive, the U.S. must surely know that its hesitancy to do these things is handing the advantage to its international competitors. They will suffer from that hesitancy while we and others outside the U.S. will benefit.” Mieko Nakabayashi, Member of the Japanese House of Representatives, quoted in Investor’s Business Daily, April 25, 2012