Making America the best place in the world to invest and create jobs should be the goal of corporate tax policy. Failure to modernize our system for the 21st century has hurt America’s competitiveness. As congressional leaders look for ways to update our system, it is imperative that they recognize how taxing growth by adding further restrictions on interest expense will lead to fewer U.S. jobs, lower wages, and decreased GDP – the antithesis of what these leaders and millions of their constituents desire. Read more HERE
U.S. affiliates of foreign companies boost domestic exports by shipping finished goods from their U.S. facilities back to their parent companies. Sometimes they use the United States as part of their global supply chain, allowing them to sell to customers around the world. These exports increase demand for raw materials and other inputs, providing another positive lift to the U.S. economy. Foreign companies in the United States typically account for about one-fifth of total U.S. merchandise exports.
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Insourcing bolsters U.S. manufacturing. Foreign-owned manufacturers with more than 1,600 affiliates in the United States in 2012 employ millions of Americans in high-paying jobs. Since often supplier companies locate nearby to furnish manufacturers with materials, component parts, and various support services, foreign investment in manufacturing provides significant employment spillovers. Economists estimate for each manufacturing job two to five additional jobs are created elsewhere in the economy.
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Foreign-owned firms continue to expand their research and development (R&D) activities in the United States. R&D carried out by U.S. affiliates of foreign enterprises supports thousands of highpaying American jobs, helps spur the discovery of new products and processes, and contributes to America’s economic growth. Over five years, insourced R&D spending neared $220 billion. Read more HERE
Once fully implemented, the study shows that TTIP and TPP will increase the stock of Foreign Direct Investment (FDI) in the U.S. economy by an estimated $173 billion, with more than one-third of that investment occurring in the manufacturing sector. It also finds that the employment contribution of insourcing companies will increase by more than 1.4 million U.S. workers. Every state would experience positive job contributions, with most experiencing an increase of more than 10,000 new jobs from global investment. Read more HERE