Washington, D.C. – Congressman Tom Emmer (MN-06) reintroduced the Corporate Rate Equality and Trade Empowerment (CREATE) Jobs Act which will reduce the United States corporate income tax rates to make our nation internationally competitive again.
Currently, the United States has the highest corporate income tax rate in the industrialized world at nearly 40 percent. Our neighbors to the north and our largest trading partner, Canada, recently reduced their rate to 15 percent while the United States’ second, third, fourth, and fifth largest trading partners, China, Mexico, Japan, and Germany, have corporate rates of 25, 30, 24, and 15 percent, respectively.
The CREATE Jobs Act would lower corporate income tax rate in the United States so that it is 5 percentage points lower than the average rate of the 33 western and western-friendly countries with whom the United States often trades. These countries make up the Organization for Economic Cooperation and Development (OECD) – in effect, our trading partners and competitors. Additionally, under this legislation, the Treasury would have the ability to recalibrate the corporate rate every five years to ensure the United States can remain competitive.
“For years, our nation’s uncompetitive, confusing and antiquated tax code has been restricting the economic growth of the United States and our job creators,” said Emmer. “Having one of the world’s highest corporate tax rates puts America at a competitive disadvantage and forces jobs and revenue overseas. Since 2000, we have seen a 28 percent reduction of global Fortune 500 companies with United States headquarters, and it is imperative we act now before it is too late. This is why we must enact policies like the CREATE Jobs Act to help our nation’s job creators – from small businesses currently coming to fruition in a garage to Fortune 500 companies – prosper and grow right here in the United States, not abroad.”
According to the Tax Foundation, reducing the corporate tax rate to 20 percent would create more than 600,000 jobs, increase the GDP by 3.3 percent and raise wages by 2.8 percent over the next ten years. Americans for Tax Reform has endorsed this legislation, noting that the CREATE Jobs Act “ensures that the U.S. again becomes a leader in the global economy and it stays there.” The National Taxpayers Union also supports the CREATE Jobs Act.
The CREATE Jobs Act is H.R. 533. Click here for full text.