WASHINGTON, D.C. — To ensure prosperity for current and future generations, including the driven young Filipina women that we at the Filipina Women’s Network (FWN) mentor and encourage, we need to keep the United States economically competitive while improving wealth and income inequality. This means bringing money back into the U.S. and promoting long-term economic growth. That’s why we believe that tax reform should be a topline goal this year.
Make the U.S. corporate tax rate competitive.
America needs a more simplified tax system that encourages companies to keep profits in the United States by creating high-paying, future-ready jobs and investing in infrastructure, education, and our communities. A boost to U.S. competitiveness, rising wages, more foreign direct investment, and lower corporate debt can free up capital for investment in America.
Today, corporate tax rates around the world are declining while the rate in the U.S. persists at the same excessive height—the highest in the developed world—pushing investment out of the country. As our entire tax code stagnates without reform, America falls behind. And while there are many factors that determine direct investment in an economy, a less burdensome tax code makes a significant difference in businesses’ decision-making processes.
Improve income inequality while raising the economic tide.
Perhaps most importantly, a comprehensive reform of the United States tax code has the potential to improve wealth and income equality while raising the entire economic tide. Closing loopholes and work- arounds that those with the most abundant financial resources use to avoid paying their fair share makes good sense and promotes a more equitable system that benefits average Americans. However, tax reform must focus on growing the U.S. economy as a whole, while protecting and strengthening working- and middle-class people. Any plan put forward must not fund tax cuts by slashing federal safety net programs that low-income and working-class communities rely on.
The tax code should work for us by getting dollars and jobs back to the U.S. and into the hands of communities that need them. FWN calls on government leaders in Washington to quickly arrive at a fair, responsible plan that stokes economic growth and creates smart, sustainable jobs.
The Filipina Women's Network is a San Francisco–based non-profit international advocacy organization that seeks to increase the power of Filipina women as leaders and policymakers at all levels in corporations, government, institutions and community organizations to achieve economic and social justice and women’s rights.