Inbound CFOs: ‘US Tax Code Makes America Less Attractive’
WASHINGTON – Nancy McLernon, president and CEO of the Organization for International Investment (OFII), issued the following statement after releasing the findings of OFII’s latest Inbound Investment Survey:
“If we’re going to hit economic growth targets set by policymakers with tax reform, we’re going to need the full job-creating potential of global investment. Unfortunately, today’s findings show that international companies are growing increasingly pessimistic about the U.S. business climate and our tax code is hurting America’s ability to attract more investment. Tax reform done right is a chance to reverse these disconcerting trends, attract new investment and create new, high-quality job opportunities for U.S. workers.”
Some policymakers have suggested that America’s tax code gives inbound employers an unfair advantage. Overwhelmingly, inbound company CFOs say that the U.S. corporate income tax system “has made the United States a less attractive place to invest,” (83 percent) according to the survey. In fact, the United States has lost ground in attracting global investment, with its share of global investment having dropped from 37 percent in 2000 to only 24 percent in 2016, according to UNCTAD’s World Investment Report.
The percentage of CFOs saying that the “U.S. business climate for foreign-based companies” is “getting worse” also continued to climb, compared to previous surveys. This level of pessimism is now the highest it’s been since 2010.
“The business climate is volatile, loaded with uncertainty on too many fronts,” stated one manufacturing company CFO.
“The uncertainty around how the tax code and healthcare law will change is causing delays in our investment decisions,” another offered.
OFII represents more than 180 international companies, such as Bayer, IKEA, L’Oréal and Unilever. The Inbound Investment Survey provides keen insights from the CFOs of OFII’s member companies on the health of the U.S. business climate for inbound investment. These executives offer a unique perspective on U.S. competitiveness as they are responsible for evaluating the strength of our economy and determining when and where to invest their company’s resources.
Created more than 25 years ago, the Organization for International Investment (OFII) is a non-profit business association in Washington, D.C. representing the U.S. operations of many of the world's leading global companies, which insource millions of American jobs. OFII works to ensure the United States remains the top location for global investment. As such, OFII advocates for fair, non-discriminatory treatment of foreign-based companies and promotes policies that will encourage them to establish U.S. operations, increase American employment, and boost U.S. economic growth. For more information, please visit www.OFII.org.