ELLSWORTH FACT SHEET:
Corporate Tax Rate, Regulations
Forcing Companies to Shift Jobs Overseas
U.S. Corporate Tax Rate at 35 percent; Second Highest in the World

INDIANAPOLIS (October 11, 2010) – Incumbent Congressman Brad Ellsworth has a lot of explaining to do.  His support of the liberal Obama-Pelosi tax-and-spend policies has encouraged U.S. businesses to shift their production overseas under a cloud of taxes, regulations and additional burdens of an anti-business agenda.

Obama’s Economic Recovery Advisory Board Says Corporate Tax Rate “Generates Incentives to Shift Jobs Overseas – President Obama’s Economic Recovery Advisory Board, formed to devise “plans for economic recovery and enhancing the strength and competitiveness of the Nation’s economy” issued a report highlighting the corporate tax rate as a major factor in diminishing the strength and competitiveness of our economy.  They wrote, “The growing gap between the U.S. corporate tax rate and the corporate tax rates of most other countries generates incentives for U.S. corporations to shift their income and operations to foreign locations with lower corporate tax rates to avoid U.S. taxes.  Over time as corporate tax rates have fallen around the world, these incentives have become stronger.”(“About PERAB.”   President’s Economic Recovery Advisory Board Website, Accessed 10/7/10; President’s Economic Recovery Advisory Board, “The Report on Tax Reform Options: Simplification, Compliance, and Corporate Taxation.”  PERAB Website, August 2010.)

U.S. Corporate Tax Rate is Second Highest in the World; Behind Only Japan - In an editorial, the Charleston (WV) Daily Mail wrote, “The United States has a corporate tax rate of 35 percent, which is second only to Japan’s 40 percent rate. The Japanese plan to drop their rate to 25 percent in a few years.  In a report last month, the Economic Recovery Advisory Board, headed by former Federal Reserve Chairman Paul Volcker, warned that the U.S. rate is pushing jobs overseas.”  (Editorial, “U.S. tax rates are hurting U.S. business.”  Charleston (WV) Daily Mail, 9/30/10)

Government Taxes & Regulations Lead to Outsourcing - A Wall Street Journal op-ed in September said, “[O]ur own government pursues policies that drive investment and job creation offshore: excessive taxes, needless regulations, lengthy permit processes, a decreasing supply of U.S. citizens with technical and engineering degrees, and a general governmental misunderstanding of how to support private-sector jobs.” (Craig Barrett and James P. Moore, Jr., “Outsourcing and the 21st Century Economy.”  Wall Street Journal , 9/30/10)

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