June 23, 2006

House Ways and Means Committee Hearings on International Tax Reform

The House Committee on Ways and Means held hearings recently on the impact of international tax reform on U.S. competitiveness. In recent months, Tax Foundation economists have released several reports exploring how the international tax system affects U.S. companies:

Capitol Hill Briefing: Global Trends in Tax Reform: Are There Lessons for the U.S.?The Tax Foundation recently hosted an exclusive briefing for congressional tax staff, featuring a presentation by Jeffrey Owens, Director of the OECD’s Center for Tax Policy and Administration.

Background Paper No. 47: Fundamental Tax Reform: The Experience of OECD CountriesSince the mid-1980s all OECD countries have engaged in fundamental tax reforms. These have been driven by the need to provide a more competitive fiscal environment: one which encourages investment, risk-taking and entrepreneurship, and which provides increased work incentives.

Special Report No. 136: The U.S. Corporate Income Tax System: Once a World Leader, Now A Millstone Around the Neck of American BusinessDespite several major tax cuts during the Bush administration, the corporate income tax rate has been left unchanged. Meanwhile, a wave of corporate tax reduction has swept other OECD countries. Today the U.S. corporate tax system lags behind many of our trading partners.

Fiscal Fact No. 55: U.S. Lagging Behind OECD Corporate Tax Trends A wave of corporate tax reduction continues to sweep through many OECD countries, but not the United States. The latest countries to consider corporate income tax rate reductions are Australia, Germany, New Zealand, and Spain.

Fiscal Fact No. 58: Options for Reforming the U.S. Corporate Income TaxEconomic considerations should guide decisions in the marketplace, not taxes. Unfortunately, the U.S. corporate tax often distorts business decisions, making the economy less efficient. As lawmakers consider options for reform, several reform proposals are available to choose from.