In response to President Obama's proposal to lower the corporate tax rate, Stephen V. Gold, CEO of the Manufacturers Alliance for Productivity and Innovation (MAPI) had a few words.
"The President's proposal to lower the corporate tax rate is a welcome sign that he plans to take a leadership role in this important endeavor. American business currently experiences the highest statutory rate among all our major trading partners after Japan, which plans to lower its rate this spring.
"The President now recognizes that taxes play a significant role in the decision-making process that manufacturers undertake on where to locate their factories. Lowering the tax rate will make this country all the more appealing to domestic and foreign investments.
"But reducing the tax rate only gets you halfway to the goal line. The level of complexity and uncertainty in the U.S. tax code hinders competitiveness and reduces the opportunities for investment. Congress needs to take steps to simplify the code and remove the uncertainty including making the R&D tax credit permanent.
"There's bipartisan support in Washington for tax reform. While we recognize this is an election year, policymakers need to get to work now. The continuing frailty of the economy and the increasing competitiveness of manufacturers elsewhere around the world call for action today, not tomorrow."