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- W2468514255 abstract "U.S. multinational corporations play an important role in the American economy. They are research and export intensive, and they provide tens of millions of high-paying jobs. Their worldwide distribution networks increase demand for domestic research, high-tech manufacturing, and management services. It is not in the interest of the United States to have multinationals’ headquarters go abroad or for them to be at a competitive disadvantage to foreign-headquartered multinationals. We should always remain vigilant, but as of now there is little evidence that U.S. multinationals are going abroad1 or that they suffer significant tax disadvantages vis-a-vis foreign-headquartered multinationals. Moreover, multinational corporations are only a part of the American economy. Multinational competitiveness is not an end unto itself. The competitiveness of the entire economy is what is critical to the standard of living of the American people. If job creation through tax reform is our goal, we cannot neglect small businesses. We cannot neglect large and midsize businesses that do not have foreign operations but nevertheless compete internationally (with their exports to foreign markets and with imports into the United States). We cannot close the door to highly mobile, job-creating foreign companies that clearly have an opportunity to locate their factories elsewhere. Too often in Washington the term ‘‘competitiveness’’ is equated to the ‘‘competitiveness of multinationals.’’ This is a serious mistake. A far more important objective is promoting the overall competitiveness of the U.S. economy.2 Tax policies that only promote the interests of multinationals are a double whammy on the rest of the economy — for two reasons. First, this tax-induced tilt of the playing field shifts economic resources to multinationals and away from the rest of the economy. This not only hurts small businesses, but it hurts the overall economy because government rules get in the way of efficient free-market outcomes. Whatever the positive effects are to the United States of promoting the success of its homegrown multinationals, they are outweighed by the economic costs of distorted investment decisions." @default.
- W2468514255 created "2016-07-22" @default.
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- W2468514255 date "2011-01-01" @default.
- W2468514255 modified "2023-09-27" @default.
- W2468514255 title "Let's Promote the Competitiveness Of All American Businesses" @default.
- W2468514255 hasPublicationYear "2011" @default.
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