Blog

Why Obama's Corporate Tax Plan is a Total Bust

 

Why Obama’s corporate tax plan is a total bust
 
By James Pethokoukis
February 22, 2012, 8:33 am

The current U.S. economic recovery is arguably the worst in modern American history. Incomes are flat, housing is moribund, and the past three years have seen the longest stretch of high unemployment in this country since the Great Depression. Yet President Barack Obama—with the backing of Treasury Secretary Timothy Geithner—has the temerity to propose a corporate tax reform plan that would actually raise the tax burden on American business by $250 billion over a decade (and de facto on workers, too) without lowering rates to an internationally competitive level. This is a terrible, terrible plan:

1. The Obama-Geithner plan would lower the statutory corporate tax rate to 28 percent from 35 percent, currently the second-highest among advanced economies. But that would still leave the combined U.S. corporate tax rate—state and federal—at 32.2 percent, far above the OECD combined average of 25 percent. The U.S. combined rate would be a bit below slow-growing Japan and France but above the U.K. and Germany. That’s not nearly good enough. Canada just lowered its corporate tax rate, for instance, to 15 percent. So instead of having the second highest corporate tax rate in the world, the United States would probably be fourth behind Japan, France, and Belgium.

 

Your reaction

NICE
SAD
FUNNY
OMG
WTF
WOW



OR


Note: Your password will be generated automatically and sent to your email address.

Forgot Your Password?

Enter your email address and we'll send you a link you can use to pick a new password.

Follow Me

Help me grow my social media, and stay up to date on all the great things I do online.
  • instagram
  • youtube
Email cannot be empty
Name cannot be empty
The email is not a valid email address.