AFP Comments on President Obama's Corporate Tax Framework
The Association for Financial Professionals (AFP) applauds the Obama Administration’s willingness to examine all options to reform the nation’s corporate tax code. AFP strongly encourages White House staff to consider changes that would improve the competitiveness of the US economy and US companies by taxing earnings, both foreign and domestic, at rates that are comparable to those of other developed nations.
A tax policy that continues to impose higher tax burdens on US companies relative to their overseas competitors puts US business at a significant disadvantage. Over time, this structural disadvantage will reduce investment, employment levels and profitability of American companies both domestically and internationally, as foreign companies exploit their lower tax burden to lower prices, capture market share and reinvest a larger portion of their profits into future growth.
In a global market where capital flows across national borders at the push of a button, capital will also gravitate toward those countries with lower corporate tax burdens, harming economic growth in the US. Therefore, AFP strongly encourages changes to the corporate tax system that will allow the US economy as a whole, as well as American companies, to compete effectively in a global economy.