U.S. Tax Reform

Lilly believes tax reform that encourages economic growth and innovation within the United States is key to creating high-quality jobs for Americans. The U.S. needs a structure that promotes innovation within its borders. Current tax policy creates uncertainty for U.S. global companies by threatening tax increases and limiting tax credits.

We can bolster the economy and spur significant investment in the United States if we focus on several key internationally competitive tax reform priorities.

Lilly has identified the following as high priorities for corporate tax reform:

Enact a territorial system for the taxation of foreign earnings, including:

  • A 95 to 100 percent exemption for foreign dividends.
  • Reasonable transition rules that address accumulated foreign earnings.
  • Anti-base erosion rules that keep U.S. companies on equal footing with their competitors.

Enact incentives for innovation, such as:

  • An enhanced R&D credit by increasing from the current rate of 14 to 17-20 percent.
  • Lower U.S. taxation on income derived from U.S.-developed and commercialized intellectual property, similar to policies embraced by European nations.

Adopt a corporate tax rate similar to other OECD countries, with:

  • A set corporate tax rate of 20 to 25 percent that aligns with other OECD countries.

With a focus on these policies, the U.S. can continue to be internationally competitive, encouraging innovation and job growth.