Sen. Portman: Congress Must Act to Stop Businesses Leaving US

Image: Sen. Portman: Congress Must Act to Stop Businesses Leaving US Ohio Republican Sen. Rob Portman.

Wednesday, 25 Jun 2014 07:23 AM

By Elliot Jager

  Comment  |
   Contact Us  |
|  A   A  
  Copy Shortlink
Ohio Republican Sen. Rob Portman has outlined a series of measures, including a cut in the corporate tax rate, to keep American companies from relocating abroad, according to a Wall Street Journal op-ed.

The current 39 percent corporate tax rate is driving companies— most recently, medical device maker Medtronic— overseas. In just the past two years, over 20 large American companies have relocated abroad, writes Portman. Competing industrial countries maintain their corporate tax rates closer to 25 percent.

He points to the Ohio firm Eaton as another example. The manufacturing company merged with the smaller Irish corporation Cooper Industries. "The new company established its headquarters in Dublin, substantially reducing its tax liability in the process," writes Portman.

Besides uncompetitive tax rates, U.S. firms also have to pay for profits they make abroad.

Under these circumstances, "Businesses are willing to pay to put a few miles between them and the IRS" buying up foreign companies for more than their market price."

All in all, he says, the system makes American firms "less able to fend off foreign purchasers and less able to grow and become more competitive through acquisitions," writes Portman.

The unintended consequence is to push companies to retain foreign earnings abroad, which stifles U.S. job creation, says Portman. Citing a recent Bloomberg report, Portman notes that some $2 trillion "that could be used to expand jobs and opportunities in the U.S. now sits overseas."

Most of America's economic competitors only tax income earned inside their borders with business revenues earned abroad taxed in the country where it is earned.

To stop businesses from leaving the U.S., Portman would have Congress cut the tax rate to 25 percent, simplify the tax code, and stop taxing profits made outside U.S. borders.

"Congress should act immediately to end the flight of U.S. businesses by overhauling the corporate tax code. That would go a long way in making America a magnet for investment again," Portman concluded.

Related Stories

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact Us  |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
Zip Code:
Privacy: We never share your email.
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Suspect Arrested in Death of 2 California Deputies

Friday, 24 Oct 2014 19:54 PM

Officials say a second sheriff's deputy has died after being shot by a suspect who has now been apprehended for four sho . . .

GOP Makes Inroads in Mass. Statewide Elections

Friday, 24 Oct 2014 19:51 PM

Republicans in solidly blue-state Massachusetts have been surging in major statewide campaigns in recent years - includi . . .

Chaffetz: Quarantine Anyone Who Has Ebola Patient Contact

Friday, 24 Oct 2014 19:32 PM

Anyone who has had direct contact with an Ebola patient should be put in quarantine upon their return to the United Stat . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

America's News Page
©  Newsmax Media, Inc.
All Rights Reserved