Tax and regulatory reform could give U.S. competitive edge
The recent announcement that Japan-based SoftBank plans to invest $50 billion in the United States and create 50,000 jobs is good news for America’s economic competitiveness, and Washington, D.C. policymakers should take note of it. Foreign direct investment (FDI) in the United States is a powerful gauge of how America is faring internationally. When a global company such as Nestle, Toyota, or Siemens invests here, it is a vote of confidence in America’s economic strength that translates to employment for millions of American workers.
But multinational companies have unprecedented options for investment. Unfortunately, during the past 15 years, America’s share of the world’s FDI has shrunk from 37 percent in 2000 to only 22 percent this past year. The United States has forfeited a huge portion of its share in global investment, and our leaders in Washington need to take decisive action to reverse this trend.