Treasury Secretary: U.S. competitiveness hurt by high tax rates

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    WASHINGTON, July 25 (Xinhua) -- The U.S. corporate tax code is hurting American competitiveness, The New York Times quoted U.S. Treasury Secretary Henry Paulson as saying on Wednesday.
    However, corporate lobbyists are not expecting him to do anything about it, the report said.
    Paulson will convene a conference on Thursday pointing out that American corporate tax rates are higher and more complex than in Europe, Japan and most industrialized countries, according to the report.
    American companies are hobbled by high tax rates, instances of double taxation and a bewildering patchwork of rules for special interests, the Treasury Department said.
    "Our tax system disrupts and distorts a vast array of business and investment decisions," the Treasury Department said. That, it added, "lowers the productive capacity of the economy and reduces living standards."
    But Treasury officials say that they are not planning any legislation and their immediate goal is simply to highlight the need for change and set the stage for future debates.
               
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