That's why we are speaking out together - two fierce competitors, UPS and FedEx, who battle daily in the global marketplace but stand shoulder to shoulder on the need to make government policies more equitable, growth-oriented and simple.
The U.S. is at an inflection point as we experience an explosion of technological innovation and urban population growth. But we are not seizing the opportunity to grow our economy fast enough. From our discussions with diverse audiences — entry-level workers to fellow CEOs, from city councils to the highest levels in Washington — we believe that business and government can forge a consensus on policies that work for America.
Broadly, we need to embrace ambitious targets for growth in our national economy. The 2-percent annual growth of recent years isn’t enough. Thinking bigger will encourage company planners to innovate and unleash productivity. Both UPS and FedEx are competing to stay ahead of the booming e-commerce market by expanding and launching new technologies. With the right policies in place, everyone can prosper:
• Simplify taxes. The principles of simple, fair and progressive taxation are vital. If you lower rates, eliminate loopholes, and otherwise simplify the code, you create opportunity for growth. Studies show that permanently lowering the corporate rate by even 10 percentage points would increase GDP by 1 to 2 percent without lowering tax revenue. That means our government could still fund programs critical to success while allowing individuals and businesses to invest more for growth.
• Invest in infrastructure. We must expand and modernize our roads, bridges, airports, seaports and other modes of transportation. China, India, and others are investing big in infrastructure while the U.S. lags. We need a long-term national approach with accountability and multiple funding mechanisms, including user fees and innovative partnerships with the private sector.
