NRF tells Congress the US must lower corporate tax rate

The National Retail Federation says the US must lower its corporate tax rate to help continue creating jobs and remain competitive in the global economy. The US has the highest corporate tax rate among developed nations.

VP Mike Pence at NRF's Retail Advocates Summit

The US currently has a 35% corporate tax rate. When combined with state tax liabilities, US companies are paying almost 39% in corporate taxes. This is extremely high compared to the corporate tax for the Organization for Economic Cooperation and Development countries which is 24.7 percent.

NRF conducted a study that revealed the average US employee of a C corp, the standard corporate business entity in the US, is paid $4,690 less annually because of high corporate taxes. NRF's study showed lowering the corporate tax rate to 20% from 35% could either result in higher wages or alternately create between half a million and 1.5 million new jobs.

In a letter to Congress, the National Retail Federation (NRF) said that the US economy will not thrive while it has the highest corporate tax rate in the industrialized world. As more international companies employ US citizens and work is outsourced, the high tax rate is proving to be a hindrance on domestic economic development.

NRF Senior Vice President for Government Relations David French urged Congress to, “compete for this investment in our country and our workers.”

French was sure to include in his letter that the corporate tax reduction should not shift the burden to consumers. This would have been the effect if the proposed border tax had passed earlier this year.

The Senate Finance Committee is holding a hearing today on tax reform for businesses. This is the second tax reform hearing the Committee has held in a series of three sessions. Last week the Committee evaluated tax reform for individuals and next week it will look at international tax issues.



 

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