Both the statutory and average effective tax rates for U.S. corporations are very high by global standards and need to be cut to restore U.S. competitiveness. Lower rates would boost competitiveness and growth. That’s why corporate tax reform needs to be passed even if it increases the deficit on a static basis. But as Joe Kennedy writes in Morning Consult, for tax reform to be fully effective, it must do more than just lower the statutory corporate rate; it should lower the effective rate while moving to a territorial tax system.
