RATE Coalition Calls for Comprehensive Corporate Tax Reform

We write to you today to reinforce the need for comprehensive tax reform in order to improve economic growth and boost job creation. It has been one year since Japan lowered its corporate tax rate, leaving the U.S. atop the industrialized world as the country with the highest statutory corporate rate. Coupled with our complicated tax system, this rate makes American businesses less competitive and makes the U.S. a less attractive place for investment, ultimately harming businesses, investors, workers and consumers.

Twenty five years ago, the U.S. had one of the lowest corporate tax rates among members of the Organization for Economic Cooperation and Development (OECD). Today, at 35 percent, the top federal statutory corporate tax rate is 10 percentage points above the OECD average and nearly 15 points higher when state and local taxes are included. The costs to our economy are significant and already being realized. According to a new Ernst & Young study, GDP in 2013 is expected to be between 1.2 and 2.0 percent lower as a result of our OECD-leading corporate tax rate. Simply put, the U.S. can no longer afford to stand still.

As leaders in Congress, each of you has called for tax reform that will put our economy on track toward sustainable, long-term growth. Over the last year, President Obama has pledged to make tax reform a priority. Speaker Boehner and leaders from both sides of the aisle have also made repeated calls for tax reform. We applaud these calls and believe that now is the time to act.

As members of the RATE Coalition, representing 30 companies and organizations with more than 30 million U.S. employees, we stand ready to support your efforts to make the U.S. more competitive. We know that some choices may be difficult and understand that base-broadeners, such as eliminating tax expenditures, may be necessary to achieve the significant reduction in the statutory rate that is required for the U.S. to better compete globally.

It has been more than a quarter century since comprehensive tax reform was last enacted and, like in 1986, we face a divided government with many doubting our chances of success. However, we are confident that bipartisan reform -- reinforced by your leadership -- will put us on a path that leads to broad economic growth and job creation. President Reagan and Speaker of the House Tip O'Neill achieved meaningful reform and we believe that it is possible again today.

As business leaders, we consider comprehensive tax reform with a significant corporate tax rate reduction to be a top priority for our companies and our country. Your efforts to date have made tax reform in 2013 a possibility. We stand ready to support you in making it a reality.