But even though officials from both sides of the aisle have expressed an interest in corporate tax reform, Democrats and Republicans don’t appear close to agreeing on how to do so.
{mosads}Efforts to revamp the tax code are also widely expected to spill over into the next Congress. To help boost foreign investment, the Commerce Department also unveiled an initiative called Select USA last year.
The Obama administration released a corporate tax framework in February that would have lowered the top rate from 35 percent to 28 percent while weeding out tax preferences.
At the same time, President Obama also recently called on Congress to reward companies that bring offshore operations home with tax breaks, and eliminate tax incentives for businesses that move in the other direction.
GOP lawmakers, who are more interested in a 25 percent top corporate rate, responded coolly to the administration framework and also would prefer to overhaul the business and individual tax systems together.
In its new report, OFII found that the manufacturing sector was the driving force behind subsidiaries’ support of the U.S. economy, accounting for more than 12 million jobs alone.
OFII’s membership list includes EADS, Nokia, Nissan, Sony, Honda and Anheuser-Busch.
The report also found that subsidiaries account for one out of five jobs in Delaware, and more than two million jobs in both California and Texas.