Hanna’s First Bill: Jobs, Income, GDP
Washingtong, D.C. (WIBX) - Representative Richard Hanna has introduced his first bill, H.R. 609, the American Competitiveness Act.
"This bill is simple, but it sends a powerful message to corporations around the world that the United States won't stand by idly while our finest corporations export jobs," Hanna said. "Our high corporate tax rate forces away investment and the jobs that come with it. It makes it increasingly difficult for American corporations to stay here and still compete in the global marketplace."
The federal corporate tax rate in the United States in 35 percent. One top of that, local and state governments pile more taxes on business - leading to an average blended rate of 40 percent in our country, Hanna said. That is 56 percent higher than the wealthy-nation average - the average rate in the Organization for Economic Cooperation and Development countries is just over 25 percent.
Hanna's bill would cut the top corporate tax rate from 35 to 25 percent over two years and keep the rate at 25 percent permanently.
According to the Heritage Foundation's analysis of a 25 percent corporate tax rate, the US could expect:
- The number of jobs in the US would grow on average by 581,000 annually from 2011 to 2020
- US real domestic product would rise on average by $132 billion per year
- a typical family of four's after-tax income would rise on average by $2,484 per year
- US capital stock would grown by an average of $240 billion more per year
- Gross private domestic investment would increase by $57.2 billion per year
Several members have signed on as co-sponsors, according to Hanna's office.