Most Americans agree that the future of the U.S. economy depends on the ability of its businesses to compete globally. One of the key factors that allow U.S. employers to grow their businesses and create new jobs is their ability to recruit and retain talent from other countries. How well does the current U.S. employment-based immigration system support this goal? Based on original research and analysis, Business Roundtable found that the United States falls short when compared to other advanced economies.
There is now widespread agreement across the political spectrum that wage stagnation is the country’s key economic challenge. As EPI has documented for nearly three decades, wages for the vast majority of American workers have stagnated or declined since 1979 (Bivens et al. 2014). This is despite real GDP growth of 149 percent and net productivity growth of 64 percent over this period. In short, the potential has existed for adequate, widespread wage growth over the last three-and-a-half decades, but these economic gains have not trickled down to the vast majority.
Despite the large increases in economic inequality since 1970, American survey respondents exhibit no increase in support for redistribution, in contrast to the predictions from standard theories of redistributive preferences. . . In particular, the two groups who have most moved against income redistribution are the elderly and African-Americans, two groups relatively more reliant on it.
March 23, 2015
In the postwar era, developed economies have experienced two substantial trends in the net capital share of aggregate income: a rise during the last several decades, which is well-known, and a fall of comparable magnitude that continued until the 1970s, which is less well-known. Overall, the net capital share has increased since 1948, but when disaggregated this increase comes entirely from the housing sector: the contribution to net capital income from all other sectors has been zero or slightly negative, as the fall and rise have offset each other.
Most developed countries impose little or no additional tax on the active foreign income of multinational companies. Today the United States is the only developed country with a worldwide system and a corporate income tax rate above 30%. Consequently, foreign companies can afford to bid more for acquisitions in the United States and abroad as compared to US companies.