Obama Wants 28% Corporate Tax Rate

From the AP:

President Barack Obama is proposing to cut the corporate tax rate from 35 percent to 28 percent and wants an even lower effective rate for manufacturers, a senior administration official says, as the White House lays down an election-year marker in the debate over tax policy.

In turn, corporations would have to give up dozens of loopholes and subsidies that they now enjoy. Corporations with overseas operations would also face a minimum tax on their foreign earnings.

Over the last 40 years, corporate taxes have fallen as a percentage of federal revenues. I can’t say if this has a realistic chance of becoming law. I would think that fighting for corporations during an election isn’t a good idea.

Of course, corporations don’t pay taxes. A corporation is just a piece of paper. The companies pass the cost on to their customers. The benefit for the government is that it hides their taxes by imbedding it in a third-party’s prices.

Posted by on February 22nd, 2012 at 9:20 am


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