We need corp tax reform

July 22, 2014

As my students can attest, I am a broken record when it comes to the United States’ corporate tax rates. Our rates are among the highest in the world. This has caused a proliferation of cross-border mergers. These mergers occur when an American company moves its legal headquarters outside of the US in order to take advantage of  lower corporate tax rates abroad. The result? America loses tens of billions in tax revenue each year. This isn’t a matter of our government closing “loopholes”. American companies with a global presence (e.g., Google) are free to establish their headquarters abroad. Our high tax rates make it virtually impossible for companies to compete in a global marketplace. It is time our government address and solve this issue and keep American companies (and tax revenue) within our border.

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