Thursday, November 1, 2012

Supercharging the U.S. Economy: Where Both Parties Agree

According to the 2012-2013 Global Competitiveness Report released in September by the World Economic Forum (WEF), the U.S. fell two positions down to number seven in the global competitiveness ranking. That’s our fourth straight year of decline. With all the pre-election rhetoric, it’s sometimes easy to forget that ultimately, we’re all on Team USA.

Beneath the finger pointing and talking points, both parties agree on some very crucial policy issues that, if addressed, would help secure our nation’s legacy of greatness by enhancing our competitiveness in the global economy. Let’s put aside the assertions that the path to achieving our nation’s goals is split down party lines, and take a look at our commonalities. This is the first and necessary step to supercharge the U.S. economy.

A side by side comparison of the Democratic and Republican platforms reveal shared perspectives in the areas of corporate tax reform; manufacturing; education reform; small businesses; Internet freedom; technology; and infrastructure.

These issues have one thing in common; they all have a direct impact on our country’s ability to remain a competitive player in the 21st century global economy. Let’s start by examining the current U.S. corporate tax code. Not only is our corporate tax rate the highest among developed nations, the U.S. operates under a worldwide tax system while most of our trading partners have adopted a territorial system so that profits earned and taxed abroad may be repatriated for job-creating investment at home without an additional tax penalty.

Both parties agree the playing field for American companies must be leveled by way of corporate tax reform. The Republican platform supports the Administration’s Export Council’s proposal of switching to a territorial system of corporate taxation, and both platforms favor lowering the corporate tax rate for American companies is an action both parties advocate.