U.S. manufacturers compete daily with foreign-based firms for product market share. Success in the market has a direct impact on local communities, regions and our country overall in the form of income, jobs and the growth of state and national economies. For U.S.-based corporations like Dow to compete effectively in the new global market, the U.S. tax system must be overhauled. The current structure - with a high income tax rate and a worldwide tax base - reflect a U.S. economy of a different era, when international activity and global competition was far less important that it is today. Further, the manner in which the U.S. government taxes the international activities of American companies not only determines the ability of Dow and others to succeed abroad, but also the ability to make important long-term investments and increase domestic employment.
U.S. tax policies should foster business-driven foreign investment. Actions on tax policy that further hinder the competitiveness of U.S. companies will result in reduced corporate growth. If changes are not made to the U.S. tax system, it will ultimately result in less growth and fewer jobs at a time when both are needed in the U.S. more than ever.