The Association for Financial Professionals applauds the
Obama Administration’s willingness to examine all options to reform our
nation’s corporate tax code. AFP
strongly encourages White House staff to consider changes that would improve
the competitiveness of the U.S. economy and American companies by taxing
earnings, both foreign and domestic, at rates that are comparable to those of
other developed nations.
A tax policy that continues to impose higher tax burdens on
U.S. companies relative to their overseas competitors puts U.S. business at a
significant disadvantage. Over time, this structural disadvantage will reduce
investment, employment levels and profitability of American companies both
domestically and internationally, as foreign companies exploit their lower tax
burden to lower prices, capture market share and reinvest a larger portion of
their profits into future growth.
In a global market where capital flows across national
borders at the push of a button, capital will also gravitate toward those
countries with lower corporate tax burdens, harming economic growth in the U.S.
Therefore, AFP strongly encourages changes to the corporate tax system that
will allow the U.S. economy as a whole, as well as American companies, to
compete effectively in a global economy.
See also: AFP’s February
22 comment letter to the House Ways and Means Committee on its recent
hearings regarding corporate tax and financial accounting.