Bermuda. Great beaches. Great weather. And, as it turns out, a great place to move your business to avoid the U.S. corporate tax code.
Today, another American business announced that it will move its operations offshore. In a $2.5 billion deal, Warranty Group Capital, headquartered in Chicago, will be acquired by Assurant, which will in turn invert to Bermuda.
At 35 percent, the United States has the highest corporate tax rate in the industrialized world. For context, the global average among developed nations is just 22.5 percent. And Bermuda has no corporate income tax at all.
Simply put, our tax code incentivizes businesses to move overseas. This is the result of taxing our corporations at much higher rates than our foreign competitors, and creating an unlevel playing field between companies headquartered in America and those based abroad.
The really sad part is that these stories have become almost routine. We go about our daily lives and don’t pay too much attention to them. It’s business as usual.
But in reality, these stories paint a broader, dire picture: The continued drain of American businesses overseas at the expense of our workers and our economy.
This needs to end. That is why our unified framework for tax reform proposes slashing the corporate tax rate from 35 to 20 percent—below the average in the industrialized world. And we will move to a territorial system that helps unlock the trillions of dollars in profits trapped abroad.
This won't just mean keeping businesses at home—it'll mean keeping good-paying jobs here. A new set of studies shows that these reforms will boost wages for average American households by thousands of dollars. That means more money in your pocket to save, invest in your children’s education, plan for retirement, or take that dream vacation—perhaps to Bermuda.