In a matter of weeks, U.S. businesses will be strapped with the highest corporate tax rate in the world. This burden impairs our ability to attract foreign investment, damages job creation efforts, reduces wages, distorts financial and economic decision making by U.S. firms and spawns inefficient government programs and policies.
Businesses can’t afford it and neither can the American workforce. Studies have shown that workers swallow as much as 75 percent of the corporate tax rate’s burden in the form of reduced hours or wages, fewer benefits, and potentially the loss of employment.
If the rate were reduced to 25 percent, an average of 581,000 jobs would be created annually for the next decade and the average family of four could realize additional income of $2,484 each year.
Health care reform’s individual mandate moves us in the wrong direction. America is facing a supreme test of her own – an economic recession longer than any in U.S. history. To prevail and increase our global competitiveness, we must empower businesses, not government. We must allow the market to dictate activities, not the federal government. We must create an environment where business, not government, flourishes.