Published 3:45 pm Wednesday, June 22, 2016
Currently, much of the job growth in our region and much of Virginia is coming from companies based overseas.
Meanwhile, many American companies are looking outside the United States to merge with foreign companies.
This sounds like a contradiction, but it is not.
It is the dilemma created by America’s outdated tax system. In the 80s, during the Reagan administration, our tax structure on business was reduced, creating the greatest expansion of business growth that lasted for 15 years.
The rest of the world saw that reducing the rate of taxation on the job producers not only created jobs, but it increased tax collections from greater business activity.
Governments that understood economics began reducing their tax rates.
Ireland, being one of the first, completely reversed the decline from which they had been suffering for years. Others followed suit.
Our current tax policy has resulted in some major American companies such as Microsoft and Apple holding many billions of dollars in other countries rather than returning those dollars to this country to avoid our tax structure.
Frank Ruff, a Republican, represents Charlotte County in the Virginia State Senate. His email address is Sen.Ruff@verizon.net.