America's biopharmaceutical industry is a key driver for economic growth, innovation and high quality jobs. We want to encourage that growth and innovation, but as a country, the United States is being left behind with its outdated tax structure.
Among 188 nations of the world, the U.S. has the world's third-highest corporate tax rate. In addition, our current structure taxes everything made in the world — unless that product is made, and related earnings are invested, outside the United States. As a result, we impose a higher tax burden on products and services produced by U.S.-headquartered companies than those imported from other countries by our foreign competitors.
We need a modern tax structure that encourages — rather than undermines — innovation, investment and employment within the United States.
We encourage Congress to enact internationally-competitive tax reform that will level the international playing field for U.S.-headquartered global companies. Successful tax reform should:
- Enact a territorial system to stop taxing the income U.S. companies make in other countries.
- Cut corporate rates from 35 percent to 15-20 percent.
- Create innovation incentives — similar to the rest of the word — to spur economic growth, innovation and jobs within the United States.