Taxes and trade are closely related. While the U.S. has one of the lowest overall tax burdens among OECD countries, our income tax rates are high and our mix of taxes hampers burdens American trade competitiveness. Over 150 other countries have border adjustable consumption taxes (VATs or GSTs) averaging seventeen percent. They can tax imports at the seventeen percent rate and subsidize exports by rebating the tax without violating WTO rules. These countries lowered tariffs and then replaced them with border taxes. U.S companies’ exports are double taxed, paying our taxes and paying foreign taxes. To be trade competitive and grow our economy, we need to change our tax mix by drastically lowering corporate and individual income taxes and adding a consumption taxes while maintaining the same progressivity and overall tax revenue. CPA is working to increase U.S. trade competitiveness by changing our tax system to eliminate the two-way trade disadvantage caused by foreign consumption taxes.
News & Research
May 23, 2017
The Coalition for a Prosperous America (CPA) appreciates the opportunity to provide testimony to the Committee on Ways and Means regarding the lik...Read More
Michael Stumo & Jeff Ferry Published On Global Trade Magazine: A New Approach To Corporate Tax ReformMay 09, 2017
The House Republican business tax reform plan may be heading for political defeat. Senate support is absent, House Republicans are divided, and Dem...Read More
September 09, 2016
Apple’s Ireland subsidiary paid an Irish tax rate of five one hundredths of one percent in 2014, slightly above zero. The U.S. statutory corporate...Read More