Savings & Retirement: Conclusion
Savings and investment fuel capital formation, economic growth, and job creation. Businesses and governments draw from the savings pool to invest in new factories and equipment, develop new technologies, build and repair infrastructure, and train and educate the nation’s workforce. This investment, in turn, increases productivity, generates additional economic activity, and boosts employment. Then incomes increase, and improvements in the standard of living occur. The U.S. government can help perpetuate this positive cycle by helping Americans save and invest, which, in turn, enlarges the pool of capital available.
Without comprehensive reform of the tax laws that hinder international operations of U.S. securities firms, American leadership of the global securities industry at home and abroad is in jeopardy. The long-range financial viability of the industry’s ability to compete in the international arena requires all competitors to be subject to comparable regulatory and tax burdens. Reform would ensure fair taxation and, as a result, promote competition in an interdependent global economy.