McLernon: Tax Reform Is ‘Critical to US Competitiveness’

WASHINGTON – Nancy McLernon, president and CEO of the Organization for International Investment (OFII), issued the following statement in response to the “Unified Framework for Fixing Our Broken Tax Code,” released today by Republican policymakers:

“While countries around the globe have done the hard work of modernizing their tax code, America’s system has grown increasingly outdated. Inbound companies are in full agreement with the broader U.S. business community that a modernized tax system is critical to U.S. competitiveness.  American workers need a system that attracts investment – and the high-quality jobs it creates – by treating domestic and international firms equally.  While many of the details of tax reform must be flushed out, today’s framework offers millions of U.S. workers hope that economic growth and greater prosperity can be achieved.”

IMPORTANCE OF FOREIGN DIRECT INVESTMENT (FDI) IN THE UNITED STATES:

• High-Quality Jobs: Approximately 6.8 million Americans are directly employed by foreign-based firms with operations in the United States (e.g. Airbus, Michelin, Samsung, Siemens).  That includes 2.5 million U.S. manufacturing workers – representing one-in-five of all U.S. manufacturing jobs.
• Good Pay: These FDI-supported jobs offer wages and benefits that are 24 percent higher than the economy-wide average.    
• Exports: U.S. workers at these global companies produce 23 percent of all U.S. exports.