SAN FRANCISCO — The semiconductor industry's largest trade association has come out in favor of a framework for revising the U.S. corporate tax structure released this week by the Trump Administration and Republican leaders in Congress.
The framework — many details of which are still unknown — would reduce the U.S. corporate tax rate to 20 percent from the current 35 percent. This would be in line with Republicans' goal to cut the corporate tax rate below the 22.5 percent average in the industrialized world.
The framework also calls for eliminating a 35 percent tax that multinational firms currently pay for bringing profits back to the U.S. from overseas.
John Neuffer, president of the Semiconductor Industry Association (SIA), called the tax reform framework "a step forward to make the U.S. corporate tax system more competitive and allow U.S. semiconductor companies to continue to grow and innovate here at home."
Neuffer said the plan would advance the U.S. semiconductor industry’s core priorities for tax reform, including a lower, globally competitive rate, a modern international tax system and strong R&D incentives.
"While there are many details of importance to our industry that need to be fleshed out, we support the plan as a framework for advancing corporate tax reform," Neuffer said in a statement.
—Dylan McGrath is the editor-in-chief of EE Times.