Obama seeks to lower the corporate tax rate

Discussion in 'Politics' started by Chris, Feb 22, 2012.

  1. Chris
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    Chris Gold Member

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    WASHINGTON (AP) — Laying down an election-year marker in the debate over taxes, the Obama administration is proposing to cut the corporate tax rate from 35 percent to 28 percent, and to seek an even lower effective rate for manufacturers, a senior administration official says.

    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.

    Treasury Secretary Timothy Geithner on Wednesday was to detail aspects of President Barack Obama's proposed overhaul of the corporate tax system, a plan Obama broadly outlined in his State of the Union speech last month.

    Chances of accomplishing such change in the tax system are slim in a year dominated mostly with presidential and congressional elections. But for Obama, the proposal is part of a larger tax plan that is central to his re-election strategy.

    The corporate tax plan dovetails with Obama's call for raising taxes on millionaires and maintaining current rates on individuals making $200,000 or less.

    The 35 percent nominal corporate tax rate is the highest in the world after Japan. But deductions, credits and exemptions allow many corporations to pay taxes at a much lower rate.

    Under the framework proposed by the administration, the rate cuts, closed loopholes and the minimum tax on overseas earning would result in no increase to the deficit.

    That means that many businesses that slip through loopholes or enjoy subsidies and pay an effective tax rate that is substantially less than the 35 percent corporate tax could end up paying more under Obama's plan. Others, however, would pay less while some would simply benefit from a more simplified system.

    The official said the Obama plan aims to help U.S. businesses, especially manufacturers who face strong international competition. Obama's plan would lower the effective rate for manufacturers to 25 percent while emphasizing development of clean energy systems. The administration official spoke on condition of anonymity to describe what the administration will do.

    AP source: Obama seeks 28 percent corp. tax rate - Yahoo! News
     
  2. Matthew
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    Matthew Blue dog all the way!

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    This is a good idea! Lowering the corperate tax would give our businesses a boost within the world economy.
     
  3. Chris
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    Chris Gold Member

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    So would national health insurance....
     
  4. Billy000
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    Billy000 Democratic Socialist

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    Good news. Romney wants to lower it to 25%, but his plan does not have the condition of no loopholes or subsidies.
     
  5. Toro
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    Toro Diamond Member

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    It's not revenue neutral. He should lower it more.
     
  6. editec
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    editec Mr. Forgot-it-All

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    Robbing Peter to pay Paul will not solve our economic woes.
     
  7. skookerasbil
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    skookerasbil Gold Member

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    but nobody thinks that except you............
     
  8. Toro
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    Toro Diamond Member

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    Cut the corporate tax rate to 15% and eliminate the loopholes, including all the intra-company offshore nonsense.
     
  9. Conservative
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    Conservative Type 40

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    nonsense.
     
  10. Conservative
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    Conservative Type 40

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    This is somethign the GOP has been looking for for a long time, but the Dems have been preventing. It's about time one of them came to their senses and came over to the light side of the Force.

    Lowering the corporate tax rate and fixing the loopholes is a good idea. Depending on the details when they emerge, I support this idea, and the President for proposing it. About time I have something from the President I can actually support.
     

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