Unleashing America’s Potential: Corporate Tax Reform
Thursday, Jul 28, 2011, 2:42pm
by Semiconductor Industry Association
Yesterday, Greg Lang, President and CEO of PMC-Sierra, Inc., and member of the SIA Board of Directors testified before the Senate Finance Committee at a hearing on, “CEO Perspectives on How the Tax Code Affects Hiring, Businesses and Economic Growth”. Watch the full hearing here, http://finance.senate.gov/hearings/hearing/?id=dc0ee9af-5056-a032-520c-bb09750de040
Mr. Lang chairs SIA’s Tax Reform Working Group, which was formed specifically to consider the challenges that the Senate Finance Committee was focused on at the hearing. How can we unleash America’s potential in order to encourage sustainable economic growth through the U.S. tax code?
It was clear from the hearing that Senators on both sides of the aisle agree that our current tax code was not designed to effectively help American multi-national corporations compete in today’s global economy.
With one of the highest statutory tax rates and a worldwide system where U.S. companies are put at a disadvantage compared to their international competitors, it is clear that comprehensive tax reform measures are needed.
In Mr. Lang’s testimony he focused on three key areas that together will boost U.S. job creation and grow the economy; a globally competitive tax rate, a move to a territorial approach and strong and permanent incentives to encourage research and development in the U.S.
Senators from both parties agreed on and highlighted the significant role that the semiconductor industry plays in the U.S. economy. Our industry, unlike other more traditional or retail industries, faces a unique set of challenges. We are in fierce competition with global competitors that operate under lower tax rates, enjoy a territorial tax system and receive generous incentives to grow their business, while U.S. headquartered semiconductor companies, operate at a disadvantage under current U.S. tax code.
Corporate tax reform will be a critical step forward in maintaining the future and pace of American innovation and it’s encouraging that the Senate Finance Committee is focusing on this issue and reaching out to industry for best practices and input.
To read more about SIA’s position on corporate tax reform, visit the SIA Document Library on Taxes.
To read the press release, visit the SIA Media Center.