The AP reports that the White House has decided to tip its cap to firms who have recently invested in the U.S. on the same day that 14 Senators will introduce legislation intended to prevent corporations from shifting profits and resources abroad. 11 leaders of domestic and foreign firms were invited to the White House Tuesday as part of a week-long discussion focused on how best to promote foreign direct investment into the U.S.
The U.S. currently taxes corporate income at one of the highest rates in the world and a recent bid by pharmaceutical giant Phizer to acquire U.K.-based AstraZeneca has sparked renewed debate on corporate tax reform. In February, Robert Pozen of the Wall Street Journal proposed a standardized 17% tax on all foreign profits that would be used to finance a 5% drop in the current corporate tax rate. Pozen spoke at an ASP-sponsored event last Tuesday, further detailing his plan and stressing the importance of corporate tax reform in ensuring U.S. economic security.