Access Politics
INVESTING IN AMERICAN JOBS: The Unified Framework for Fixing Our Broken Tax Code supported by President Trump will end the “offshoring model” as companies will bring profits back and invest in American workers.
• In 2016, a Federal corporate tax rate of 20 percent could have brought more than $140 billion in corporate profits back to America, according to an analysis by the CEA.
o Those profits could have helped boost the incomes of U.S. households.
• Our current uncompetitive corporate tax rate encourages U.S. firms to keep profits offshore.
o The United States has the highest corporate income tax rate among the 35 industrialized Organisation for Economic Co-operation and Development (OECD) countries, according to the OECD.
o The U.S. corporate tax rate has been higher than the OECD average for almost 20 years.
• Last year, more than 70 percent of foreign profits earned by U.S. firms were kept offshore, up from 42 percent in 1984, according to an analysis by the CEA.
o Companies hold an estimated $2.8 trillion in earnings offshore, according to Audit Analytics.
• Cutting corporate tax rates will encourage firms to invest back in the United States, creating well-paying jobs for hardworking Americans.
o After President Bush’s 2003 tax cuts, the economy created 7.8 million jobs over five years, based on data from the Bureau of Labor Statistics.
o After President Reagan’s 1981 tax cuts, the economy created 14.8 million jobs over five years based on data from the Bureau of Labor Statistics.
o After President Kennedy’s tax cuts, the economy created 12.0 million new jobs over five years based on data from the Bureau of Labor Statistics.
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