The Semiconductor Industry trade group Tuesday (March 14) endorsed a proposal by Congressional Republicans to reform corporate tax rates as “an appropriate starting point.”
The “Better Way” corporate tax reform blueprint would reduce the federal corporate tax rate to 20 percent from 35 percent and also repeal the alternative minimum tax for corporations.
The blueprint, first unveiled last summer, was written by U.S. Speaker of the House Paul Ryan and Kevin Brady, chairman of the powerful House Ways and Means committee. The proposal, expected to be considered in Congress this year, has previously been criticized by democrats and by President Donald Trump prior to his taking office in January.
In a statement issued Tuesday, SIA President and CEO John Neuffer said the Better Way blueprint would make the U.S. corporate tax system more competitive and enable U.S. semiconductor companies to grow, innovate and create more jobs in the U.S.
"While there are many details of significance to our industry that need to be understood and addressed, we support the proposal as a framework for moving forward with tax reform," Neuffer said in the statement. “We recognize the debate is just getting underway.”
Neuffer said the SIA intends to work with Congress and the Trump Administration to "pass corporate tax reform to improve the competitiveness of the United States as a location for semiconductor research, design, manufacturing and export."
The House reform proposal has also received the endorsement of the Aerospace Industries Association of America, a trade group that represents firm in the aerospace and defense industries.