Federal Tax Reform Necessary For Global Competitiveness

Randy Zook, CEO of the Arkansas State Chamber of Commerce and Associated Industries of Arkansas, says reducing the federal corporate tax rate from 35% to 20% is critical for U.S. companies to remain competitive worldwide.

“It makes us more competitive in the global economy,” said Zook, who appeared on this week’s edition of Talk Business & Politics. “It avoids the trapping of profits earned overseas by U.S. companies because of the possibility of having to pay yet another tax when you bring profits back into the U.S. So the money sort of is in a box overseas and not available for investment in plant and equipment and wages and dividends.”

Zook said analyses that suggest the tax cut plans being discussed in the GOP-controlled Congress would balloon deficit spending don’t account for economic growth that would be stimulated by the cuts.   MORE

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