“It cuts tax rates even further for manufacturers that are creating new products and manufacturing goods here in America. Finally, because no company should be able to avoid paying its fair share of taxes by moving jobs and profits overseas, this framework includes a basic minimum tax for every multinational company,” the president said.
The proposal, if enacted, would still leave the United States corporate rate eight points higher than the average country in the Organization for Economic Cooperation and Development, he said.
The United States is on the way by April to having the highest corporate tax rate in the industrialized world after Japan lowered their rate.
No other developed country imposes a “minimum tax” on businesses, said John Engler, president of the Business Round Table.
“The last comprehensive tax reform in the United States was a generation ago,” Engler said in a statement. “The U.S. tax system has become increasingly outdated, complicated and uncompetitive as the world economies have grown more interconnected. The framework adds complexity and raises taxes, moving us away from the rest of the world.”
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