Pete Sessions Introduces Bill to Lower the Tax Rate on Business Earnings
by TexasGOPVote on March 10, 2011 at 2:54 PM
I have introduced H.R. 934, legislation that would reduce the tax rate on business earnings to a flat, across-the-board rate of 18 percent, effective January 1 of this year.
Struggling Americans are looking to our nation’s leaders for relief during this period of economic distress and our current sky-high corporate tax rates put American jobs at continued risk. Lowering the tax rate on business earnings to a flat 18 percent would jump-start our economy and allow firms to use more of their hard-earned money for business expansion and job creation. This change in the tax law would make U.S. companies more competitive in the global marketplace.
American businesses are currently faced with a top tax rate of 35 percent on earnings. In December 2010, Japan reduced its rate by 5 percent – leaving America with the highest corporate tax rate in the world. Keeping this high tax burden on our nation’s businesses will further weaken our economy and stifle job creation. Nations such as China, Singapore and Canada have corporate tax rates of 17.5 percent or less. Under this legislation, American businesses would be on a level playing field with their competitors in these other nations, all of which are experiencing economic growth rates far outpacing our own.
Simply put, we’re better off with more jobs at a lower tax rate on business earnings than having fewer jobs at the current higher tax rates. We will benefit more from each new paycheck cut in the private sector with a lower tax rate on business earnings compared to maintaining the current tax rates without such a job created. President Obama expressed his support for a lower corporate tax rate in his State of the Union address this year, and I call on Congressional Democrats and the Administration to embrace my common-sense proposal that will get the American people back to work and empower our businesses to succeed.