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December 20, 2007
HP-751 Asst. Sec. Solomon Statement on Release of Treasury Study "Today the Treasury Department released a comprehensive study addressing business taxation and global competitiveness that is a follow-up to the July conference with business leaders, economists, and policy makers about this important issue.
"This report, Approaches to Improve the Competitiveness of the U.S. Business Tax System for the 21st Century, outlines several broad approaches to business tax reform. The study also outlines specific business tax areas that can be addressed. There are no policy recommendations in this study. We believe it will provide significant substance for discussion, and will further the effort to inform the public policy debate.
"The world economy has changed dramatically over the past half century and so too has the U.S. role in that economy. Trade and investment flow with greater volume and greater ease. As we look to the future, many factors, including education, immigration, and trade policies play an important role in the lives and living standards of U.S. workers and in the ability of U.S. companies to compete globally. By influencing incentives to acquire and use capital, business taxes also play an important role in economic decision making. Our major trading partners recognize this. Many have or plan to modify their business tax systems to improve their global competitiveness. The current U.S. system is far from optimal, and we cannot afford to be left behind.
"To maintain the competitiveness of U.S. businesses and U.S. workers in a global economy, an examination of our business tax system in the context of the global marketplace is overdue. As we continue our work on this important issue, we look forward to discussions with Congress, the business community, and other policy makers."
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