Modernizing tax laws.
Improving the nation’s tax laws will have a significant impact on economic growth in the San Diego region and for the whole country. Our tax laws should incentivize companies that compete globally to invest in the U.S. and create jobs here.
Our current tax laws do just the opposite – they encourage U.S. companies to keep money outside the U.S. and to look for ways to spend it in other countries. Currently, the U.S. has the highest corporate tax rate of all OECD countries. It is estimated that U.S. corporations hold as much as $2 trillion in offshore bank accounts. That money could be doing a lot of good in the U.S economy. We support comprehensive reforms that will enable U.S. companies to compete with other countries while encouraging investment at home, including:
- Moving from a worldwide taxation system to a territorial system. The current system of worldwide taxation penalizes U.S. companies and places them at a disadvantage relative to their overseas competitors.
- Making the research-and-development tax credit permanent.