U.S. Treasury Secretary Henry Paulson said Thursday that the current corporate tax code has hurt U.S. overall economic performance.

"Our current business tax system is clearly not optimal," said Paulson in an opening statement at the U.S. Business Tax Competitiveness Conference.

"The question we must ask ourselves, then is this: for a given level of revenue, what business tax regime best maximizes job creation and economic growth and in doing so promotes higher standards of living for Americans? " he said.

The U.S. treasury chief said that when U.S. economy is in a position of strength, it is an opportune time to discuss the business tax system and its impact on workers, investment, and the U.S. ability to compete in the world marketplace.

The average U.S. combined federal-state corporate tax rate stands at 39 percent, compared to an average of 31 percent for other major industrialized countries, said Paulson.

But Treasury officials also noted that they are not planning any legislation and their immediate goal is simply to highlight the need for change and set the stage for future debates.