Cape News

Since the 2017 tax relief, no major American corporation has moved its headquarters overseas. The Trump tax cuts aimed to make America more competitive globally, which proponents argue helped retain jobs and spurred investments in less developed areas of the country. Before these cuts, during President Obama's administration, 28 corporations relocated their headquarters abroad to benefit from lower foreign taxes. In contrast, since the implementation of the Trump tax cuts, no American corporation has done so.

The policies included a competitive corporate tax rate and incentives for companies to keep intellectual property within the U.S., alongside reforms on revenue earned abroad. There is concern that if these tax cuts expire, businesses might again consider moving investments and jobs overseas.

House Ways and Means Committee Chairman Jason Smith (MO-08) expressed concerns about potential consequences if the Trump tax cuts are not extended: “President Trump was given a mandate to put America first again... Allowing the Trump tax cuts to expire will be the equivalent of handing foreign nations like China our wealth, tax revenue, and jobs."

The Global Competitiveness Tax Team led by Rep. Kevin Hern (OK-01) is advocating for maintaining America's competitive edge. Discussions with business leaders have highlighted how these tax cuts encouraged domestic investment and job creation. For instance, one company reportedly increased its investment by $6 billion while adding over 4,000 jobs.

Increased investment in America led to higher-than-expected tax revenues post-2017. Over five years following the Trump tax cuts, annual revenues exceeded projections by an average of $170 billion.

Meanwhile, criticism is directed at the Biden-Harris Administration's efforts regarding global taxation agreements perceived as detrimental to U.S. competitiveness. The Ways and Means Republicans have opposed such deals that they argue would disadvantage American businesses against international competitors.