It is unfortunate that the US, which has led the capitalist world for so long, is woefully uncompetitive in corporate tax policy. We have the second highest corporate tax rate among Organisation for Economic Co-operation and Development countries and many other tax policies that make it difficult for US companies to compete. Studies such as one done by William C. Randolph of the CBO in 2006 have estimated that 70 per cent of corporate taxes are ultimately borne by the American workforce.

Our tax system is particularly onerous for asset-intensive, industrial businesses such as manufacturers and transport companies. For example, Caterpillar, Boeing, FedEx, commercial airlines and carmakers produce goods and services and provide jobs for millions. But to maintain or increase jobs and compete globally, these companies must be able earn an acceptable return on capital expenditure.