By Ryan Ottney
August 1, 2013
Ryan Scott Ottney
PDT Staff Writer
U.S. Sen. Sherrod Brown (D-OH) submitted a plan to the Senate Finance Committee last week to increase American competitiveness by overhauling the corporate tax code in order to promote investment in the United States, increase domestic production, and create high-skilled jobs. Brown’s plan is endorsed by the RATE (Reforming America’s Taxes Equitably) Coalition, representing five companies that employ 1.2 million Ohioans at 786 locations — including CVS and UPS in Scioto County.
Brown argued that tax reform must ensure that our nation secures its fiscal future while addressing the challenges of an increasingly globalized economy.
“Corporate tax reform is necessary to ensure the American economy is the most desirable place in the world for U.S. based companies to invest,” Brown said. “We can do that by closing down tax havens that cost our country revenue and cost American workers jobs. Lowering the corporate tax rate would put companies on a level playing field with foreign competitors and reduce the incentive for them to shift jobs and profits overseas. Creating a global minimum tax rate will level the playing field, raise revenue, and prevent a global race-to-the-bottom.”
Brown’s plan would lower the Corporate Tax Rate to be competitive with the average of countries that are part of the Organization for Economic Co-operation and Development (OECD), an international economic organization of more than 30 countries whose mission is to stimulate economic progress and world trade. This reduction in the U.S. corporate rate would place domestic companies on a level playing field with their foreign competitors and reduce incentives for companies to shift jobs and profits overseas. Brown said the plan would also create a Global Minimum Tax Rate to close offshore tax havens and eliminate incentives for tax arbitrage.
“The RATE Coalition appreciates Senator Brown’s call for a lower corporate tax rate which will make American companies more competitive and would boost investment and growth here at home,” said Elaine Kamarck, co-chair of the RATE Coalition, with RATE Coalition Co-Chair James P. Pinkerton, former White House domestic policy adviser to Presidents Ronald Reagan and George H.W. Bush.
“The proposal notes that a lower corporate rate would place U.S. companies on a level playing field with international competitors, bringing needed jobs back here to the U.S. Senator Brown is a welcome voice in the growing call for tax reform, and we will look for lawmakers to continue to play an important leadership role in creating a fair and modern tax code. The RATE Coalition has long called for comprehensive tax reform that cuts loopholes and uses those expenditures to significantly reduce the corporate tax rate to compete with OECD trading partners. Senator Brown’s proposal is another positive step in that direction.”
The RATE Coalition is comprised of 32 companies and organizations advocating for corporate tax reform. Members currently include: CVS (330 locations in Ohio — two in Scioto County), UPS (176 locations in Ohio — two in Scioto County), Time Warner (77 locations in Ohio), Duke (seven locations in Ohio), and Ford (196 locations in Ohio); also AT&T, Altria Client Services Inc., Association of American Railroads, Babcock & Wilcox, Boeing, Brown Forman, Capital One, Cox Enterprises, FedEx, GAP Inc., General Dynamics, Home Depot, Intel, Kimberly-Clark, Liberty Media, Lockheed Martin, Macy’s, National Retail Federation, Nike, Northrup Grumman, Raytheon, Reynolds American, Southern Company, T-Mobile, Verizon, Viacom, Walt Disney and Wal-Mart.
Ryan Scott Ottney may be reached at 740-353-3101, ext. 287, or email@example.com. For breaking news, follow Ryan on Twitter @PDTwriter.