Accounting Today reports on the Organization for Economic Cooperation and Development‘s (OECD) June 2014 Economic Surveys of the U.S. From the OECD report (emphasis added):
The US economy is recovering from the Great Recession and near-term prospects are favourable. The sector of manufacturing durables is enjoying a particularly strong revival thanks to more competitive labour costs and low energy prices. The recovery is more sluggish than after past recessions because the damage of the financial crisis has not been fully repaired, government spending has exerted an unusual drag and, finally, the long-expected retirement of baby-boomers has depressed the labour supply. Hence, removing obstacles to growth comes with a certain degree of urgency. For this, tax reform has a key role to play: business investment is discouraged by high marginal tax rates while numerous tax expenditures distort resource allocation. Aggressive tax planning by multinational firms also imposes a higher tax burden on everybody else; and individual taxpayers face costly compliance obligations. Other key reforms could also improve long-term growth prospects, notably policies to raise labour-force participation, improve immigration laws, help parents with young children and ease access to quality education for lower-income groups.
The OECD is an international group so the spelling you see is from the report.
No big surprise here, another in the chorus of voices saying our tax laws are too complex to be competitive. The report goes on to recommend:
Comprehensive tax reform
• Cut the marginal corporate income statutory tax rate and broaden its base, notably by phasing out tax allowances.
• Act towards rapid international agreement and take measures to prevent base erosion and profit shifting (BEPS).
• Make the personal tax system more redistributive by restricting regressive income tax
The entire OECD report, available in PDF, can be retrieved here.