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Tax Reform: Supporting Growth, Creating Jobs and Investing in Better Health
Comprehensive tax reform is an issue taking center stage in our national dialogue not just in Washington, D.C. but around the country. As a U.S.-based domestic company with nearly 250,000 employees, CVS Health is committed to improving health care and lowering costs for millions of Americans, and we believe that common sense changes to the tax code will help us, and many U.S. companies like us, do just that.
Decreasing the Corporate Tax Rate Enables Increased Investments in Better Health
Comprehensive tax reform comes with measurable benefits to Americans’ health. Reducing the corporate tax rate would enable accelerated investment in the technologies and infrastructure needed to improve care quality and efficiency, while encouraging competition and expanding lower cost options for patients.
In 2016, CVS Health’s effective tax rate was actually greater than the statutory federal tax rate of 35 percent, and the enterprise paid nearly one percent of all corporate taxes collected in the U.S. Reducing the corporate tax rate to a competitive 25 percent would allow CVS Health to build new CVS Pharmacy and CVS MinuteClinic locations each year, helping to bring care closer to home for thousands of Americans.
Savings generated by tax reform would also enable us to invest more than $100 million in new technologies to improve care and outcomes. A reduced corporate tax rate would also encourage other businesses in the industry to make similar investments, improving health options and outcomes for Americans at an even larger scale.
Reducing the Corporate Tax Rate Would Spur Economic Growth in Local Communities
A lower corporate tax rate would also grow local economies, expanding opportunities for more Americans. Using CVS Health as an example, each single-digit reduction in the corporate tax rate would generate more than $90 million in annual capital that we could invest in local communities. If corporate taxes were lowered from 35 to 25 percent, CVS Health could create 3,000 permanent jobs and 4,500 temporary construction jobs for new facilities.
Comprehensive tax reform will strengthen our company’s ability to help lower health care costs and improve patient outcomes while at the same time supporting growth in local communities across the nation.
For more information about CVS Health’s efforts to improve pharmacy care, visit our Health Care Delivery & Innovation information center and the CVS Health Impact Dashboard. And to stay informed about the most talked-about topics in health care, register for content alerts and our bi-weekly health care newsletter.