U.S. Companies Continue to Suffer from the High Cost of Corporate Taxation

Joe Kennedy August 28, 2015
August 28, 2015

A new PwC study found that U.S. companies consistently pay a higher effective tax rate than their overseas competitors, writes Joe Kennedy in Innovation Files. It is clear that this disadvantage would be even greater if U.S. companies were not allowed to defer foreign income that has been permanently invested overseas or if key incentives and deductions like the R&D tax credit did not exist. These findings confirm the continued need not just for corporate tax reform, but for reform that lowers the effective rate. Reform that is revenue neutral and that only lowers the statutory rate without lowering the effective rate will do little for U.S. competitiveness.