Honeywell Chairman & CEO Dave Cote appeared on Bloomberg’s Street Smart on Monday, August 27th. Street Smart host Trish Regan reported live from the Republican National Convention in Tampa, Fla. and spoke with Cote about the U.S. economy, debt/deficit, corporate taxes, and the ensuing fiscal cliff.
In the interview, Cote addressed the steps that we need to take as a country to get our 16 trillion dollars worth of debt under control, calling it the biggest impediment to economic growth in the U.S. “We need a complete upheaval and turnaround on two big things. One is a simplified tax system that collects more and the second is a simplified Medicare/Medicaid system that spends less,” said Cote. “If we don’t do that we are really going to lose our competitiveness as a country.”
Cote also discussed foreign vs. corporate tax rates and remaining competitive overseas. “At the end of the day, one of the reasons we go to other countries is because that’s where the business is. You can’t just export everything – there’s a lot of times where you have to have a position in that region. So it’s not done to avoid taxes, it’s done because you have to be there because that’s where the business is. We shouldn’t be imperiling U.S. companies to be competitive with our foreign competitors by putting in a tax policy that puts them at a disadvantage. So, I’m very much in favor or a territorial system and that’s what we advocated in Simpson-Bowles.”
Please visit Bloomberg’s website to view the full interview.