BRADY: Ending Made in America Tax a Major Win for America

U.S. Rep. Kevin Brady--Ways and Means Chairman Texas Insider Report: WASHINGTON D.C.Our bold Blueprint for tax reform takes historic action to unleash job creation and economic growth in America. One of the most pro-growth features is that were finally going to end the self-imposed Made in America tax on U.S. exports a backwards feature of our nations current tax code that gives foreign-made products an advantage over American-made goods services and intellectual property. Heres a simple example of how todays Made in America tax helps our foreign competitors at the expense of American businesses and workers: Consider two global companies: an American company that manufactures tractors in Ohio and its European rival that manufactures tractors in Germany. With the Made in America tax imposed by the current U.S. tax code the Ohio-based company is subject to U.S. tax on every tractor they make here and sell in Europe. Meanwhile the European rival pays no U.S. tax on the tractors they make in Germany and sell in America. Imports are not taxed under the current U.S. system but American exports are. Basically the Made in America tax on U.S. exports works exactly like it sounds if you make products in America youre taxed when you sell them abroad. But if you make products abroad youre not taxed when selling them here. In this way our nations current tax code provides a direct incentive for businesses to move operations and jobs overseas. After all if its not Made in America its not subject to the Made in America tax. Ending the self-imposed Made in America tax on U.S. exports is a bold solution that will help our businesses and workers compete and win anywhere in the world but especially here at home. Here are three reasons why ending the Made in America tax is a win for our businesses workers and communities: Win #1: Leveling the playing field for Americas job creators and workers With some of the brightest most innovative small businesses and workers in the world the products we make and sell here in America often set the global benchmark for quality. Thats why our nation is so successful when competition takes place on a level playing field. But today with the Made in America tax the deck is being stacked against our job creators and workers. The worst part of it all is that were doing this to ourselves. By eliminating the Made in America tax we can dramatically level the playing field for our workers and communities. No longer will American businesses be forced to compete with one hand tied behind their backs. Instead competition will occur on price quality and service. And when that happens Made in America products and all of the businesses and workers who make them are about as unbeatable as they come. Win #2: Making America a magnet for investment and job creation Its a basic rule of thumb if you want to get less of something put a tax on it. And thats exactly what weve seen as a result of the Made in America tax. Its completely backwards and it continues to drive research and development investment and good-paying jobs out of our communities. To get our economy moving again America needs a modern tax system that empowers our job creators and workers to make more not less here in America. And we need a tax system that encourages our businesses to sell their products to more customers throughout the world. Success in global markets creates jobs and growth here at home. Ways and Means Republicans are committed to ending the Made in America tax as part of comprehensive pro-growth tax reform. When combined with the other historic reforms of our Blueprint this solution is a game-changer that not only removes incentives for companies to relocate abroad but also makes the United States a magnet for 21st century investment and job creation.  Win #3: A modern international tax system for the 21st century Americas international tax system is among the most complex costly and uncompetitive of any major country in the world. Not only does this make it harder for our businesses to compete and succeed it makes America a less attractive place to do business in the first place. Eliminating the U.S. tax on Made in America products will also eliminate antiquated and burdensome U.S. international tax rules that put our companies at a disadvantage in the global marketplace. In the end that means a vastly simpler and more modern U.S. international tax system for the 21st century one that supports economic growth here at home by giving our businesses products and workers a greater chance to succeed all over the world. Our major international competitors stopped taxing their own exports a long time ago. Now its Americas turn to do the same. Ending the self-imposed Made in America tax on U.S. exports is a win for our economy and for Americans of all walks of life.