Global Corporate Xpansion

GENERAL BUSINESS NEWS

U.S. Business Tax Costs

Do Well Internationally

San Juan, Puerto Rico; Baltimore, and Atlanta have the most favorable tax structures for businesses among U.S. cities/locations with populations exceeding 2 million, according to KPMG’s “2008 Comparative Alternatives: Focus on Tax.” Of the 35 large international cities highlighted in the study, San Juan, Baltimore and Atlanta all rank in the top 10, first, eighth and ninth, respectively. What’s more, among the 10 countries in the study, the United States ranked fifth in terms of the favorability of its overall tax structure for business. The study compares total tax burden, including corporate income taxes, capital taxes, sales taxes, property taxes, miscellaneous local business taxes and statutory labor costs. The study is intended to provide guidance for companies wanting to compare the tax burden they may incur in different cities around the world. “As the survey results indicate, certain cities are leaders in developing a tax environment that encourages business development, and tax costs are a key to consideration in the site selection process,” says Hartley Powell, national leader, KPMG’s Strategic Relocation and Expansion Services. To learn more about the study, visit www.us.kpmg.com.

Massachusetts Tops Milken’s Technology List

Massachusetts, which earlier this year passed a $1 billion life sciences bill to invest in infrastructure to support R&D activities during the next 10 years, ranked first in the Milken Institute’s “2008 State Technology and Science Index,” followed by Maryland, Colorado and California. These states are found to be in the best position to succeed in the technology led economy. The index, last conducted in 2004, reviews 77 indicators, which are compiled into five components. “States that have a vision and a plan for building and retaining high-wage jobs and viable industries are finding ways to invest in their science and technology assets,” says Ross DeVol, director of regional economics, Milken Institute. To learn more about the full report, visit www.milkeninstitute.org.

CEOs Portray Dismal Forecast

U.S. CEOs say the future of the U.S. economy will depend on lower taxes, lower regulation, privatized education and free trade. In a survey conducted by Chief Executive of CEOs between June 13-27, CEOs were asked which policy position they think the country should take to increase or maintain American competitiveness as well as questions on which countries will generate the highest number of jobs, and where the top paying jobs will be located in the future. In addition to the solutions CEOs offered up to strengthen the economic outlook, CEOs also ranked China No. 1 in terms of future job creation; India came in second with more

than a quarter of the votes. The United States, Vietnam and Brazil tied for third place, each receiving about 5 percent of all the votes. To learn the complete details of the survey, visit www.chiefexecutive.net.ceoindex.

China: Third-largest Importer

Of U.S. High-Tech Products

AeA, the nation’s largest high-tech trade association, recently released the 23rd edition of its “Competitiveness Series,” which reviewed the economic relationship between the United States and China in terms of trade and foreign direct investment. For example, U.S. high-tech goods exports to China more than doubled between 2001 and 2007, which makes China the third-fastest growing and the third-largest destination for U.S. high-tech exports. The report also found that U.S. direct investment in China was $22.2 billion in 2006, a 30 percent increase over 2005. In 2006, U.S. technology investments in China totaled $1.9 billion, a 69 percent increase over 2005. China’s economic rise poses opportunities and challenges, and the AeA says that public policy in the United States and China must recognize the interdependent nature of the countries and avoid protectionism and distorting trade practices. The organization says that such policies restrain trade, damage economies and raise prices for consumers. The new report outlines a number of public policy recommendations for dealing with China as a rising economic power. To learn more, download the report at www.aeanet.org/cs.

International Automakers

Continue Investments In America

The Association of International Automobile Manufacturers recently released updated investment figures for its member companies from 2007. Representing 14 international automakers, total capital investment reached $39.3 billion in 69 major facilities, including vehicle plants, engine and transmission manufacturing operations, component facilities and R&D centers. The 3. 5 million units built in the United States by the association’s members represented 33 percent of total production by all companies manufacturing cars and light trucks in America. With a market share of 40 percent, nearly 55 percent of these companies U.S. sales were from products built in the United States. These companies purchased more than $46 billion in parts and material from U.S. suppliers in 2007. These same companies are expected to spend an additional $3.9 billion in new and updated U.S. facilities. Three of these projects include assembly plants for Honda in Indiana in 2008; and a Kia plant in Georgia, and a Toyota plant in Mississippi in 2009. To learn more about the national, state and employment data, visit www.aiam.org.