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Yesterday, the president met with business leaders at the White House to discuss ways to grow the U.S. economy.

Prior to the event the president issued a statement saying, “I just want to point out these are some outstanding companies, all of whom are investing in the United States, are representing major companies that see the U.S. as a great place to do business.  We have made enormous strides over the last several years not just recovering from a Great Recession, but taking advantage of and now marketing the advantages of doing business in the United States — whether it’s low energy costs, an incredibly productive workforce.”

The president continued,  “Obviously, we have the most dynamic and creative and innovative economy in the world, but we don’t always do what it takes to go after business around the world and make sure that they know the benefits of investing in the largest market on Earth. And we want to be more systematic about it. We want to make sure that the federal government is working in sync with state and local governments when it comes to locating businesses here in the United States.”

Among the attendee’s was Ford Motor Co.’s Americas chief Joe Hinrichs, but other executives included Zurich Insurance Group, Umicore USA, Novozymes, Global Foundries, Ericsson North America, Lufthansa AG and Hankook Tire.

Missing from this event were representatives from small businesses, which account for around 70% of all jobs created in the U.S.

Far too often both Republican and Democrats continually look to corporate America to be the engine of job growth but reality is that small business is the engine of economic growth.

Both political parties talk about growing the economy, but the real culprit hindering the growth of the economy is Washington itself.  One way would be to reform the outdated and complex tax code which rewards corporations by keeping their profits abroad and punishes small business at a disproportionate level. 

A report by the Council on Foreign Relations, “Renewing America” stated, the “statutory” U.S. corporate tax rate, which is the official rate before any tax breaks are applied, is the highest in the developed world and has remained largely unchanged for three decades. Unlike most other developed countries, the United States has a “worldwide” tax system through which it taxes foreign profits. Yet the tax code allows corporations to defer these taxes if foreign profits stay abroad.

Continued in the report, the way the United States taxes foreign profits was established in the 1960s. The last major tax overhaul was in the mid-1980s. While the U.S. government has stood still on corporate tax reform, most advanced countries have been lowering corporate tax rates, reducing tax breaks, and changing how they tax foreign profits.

Republican champion tax reform, but in February, House Ways and Means Chairman Dave Camp of Michigan released his comprehensive tax reform proposal to only have it rejected outright by the Republican leadership.

Camp stated, “It is no secret that Americans are struggling.  Far too many families haven’t seen a pay raise in years.  Many have lost hope and stopped looking for a job.  And too many kids coming out of college are buried under a mountain of debt and have few prospects for a good-paying career.  We’ve already lost a decade, and before we lose a generation, Washington needs to wake up to this reality and start offering concrete solutions and debating real policies that strengthen the economy and help hardworking taxpayers.  Tax reform is one way we can do that.”

Unfortunately both sides cannot even agree on a starting point.  The president continues to insist on any tax reform start with raising taxes on the top 1%, but his own polices and that of the Federal Reserve continue helping Wall Street at the expense of Main Street.

The president should have met with small business owners; they are the real engine of economic growth.