funding the future
TA X P L A N OPENS DOOR
M T S ENTS E V N I by Courtney Daniel
Attracting new business and creating jobs are two of the most important issues for many state leaders. And now, with the newly passed tax plan by the Trump administration, states will have another tool to bring businesses from companies outside the U.S. to their states. Previously, the U.S. had one of the highest corporate tax rates among major economies at 35 percent, but the new tax law reduces the rate to 21 percent. Only 11 countries in the Organization for Economic Cooperation and Development, a group of 35 countries with advanced economies, had a lower corporate tax rate in 2017.
MAR/APR 2018 | CAPITOL IDEAS
“For years the United States has had one of the highest corporate tax rates in the world,” said Andy Karellas, CSG director of federal affairs. “On a global level, lowering the corporate tax rate can help us even the playing field and showcase our unique advantages as it comes to workforce, infrastructure, resources and quality of life.”
Every company is looking for something different when it comes to settling in a U.S. state. Factors that are often considered include a skilled workforce, energy, infrastructure, access to high speed internet, demographics, geography and taxes. Karellas said governors have become more active in the last several years engaging with state trade and economic development offices to bring in new business. “Governors are the best salespeople for bringing business to their state,” Karellas said. “They are the facilitator and introducer and share demographics, capacity and regulations. They understand what their key assets are and resources and they’re going to be the ones to make the deal.”
Funding the Future