President Obama is set to unveil his plan to overhaul the corporate tax code. Although corporations in the United States effectively pay the fewest taxes in the developed world – the President is proposing lowering the corporate tax rate from 35% down to 28% - with a special 25% rate for manufacturers. In return – the President wants to close several loopholes and tax subsides that corporations currently enjoy – like loopholes that give corporations tax breaks for shipping Americans jobs overseas.
The lower tax rates and the closing of loopholes will offset each other – meaning the plan will not lead to any increase in revenue for the federal government. Of course this overhaul plan does have to get through Congress – where 30 corporations in the Fortune 500 have spent more money on lobbying than in paying taxes.
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It's the old "reset" button trick that in recent history has always back fired. Lower taxes in exchange for closing the loopholes and later down the road you can in theory slowly raise the taxes. I'll put money on the taxes not ever being re-raised.
He's going to take us to the place where we eliminate taxing income of corporations and instead just tax their retained earnings, as some states do (like Texas.) Which I think is the better policy.
Or he could just be lining his future nest post-Pennsylvana Avenue. He's a young man with two young kids. I'd do the same thing.
He's going to take us to the place where we eliminate taxing income of corporations and instead just tax their retained earnings, as some states do (like Texas.) Which I think is the better policy.
Or he could just be lining his future nest post-Pennsylvana Avenue. He's a young man with two young kids. I'd do the same thing.
Come on Chili, would you really line your children's nest at the expense of hundreds of millions of fellow Americans? That seems to be the problem in the world today. Everyone seems willing to help anyone as long as there is no self sacrifice involved.
There's enough Obama-bashing going on. I'm going to vote for him again, based only on the lower courts judges (Scalia and Kennedy will not retire before 2017) and I'll probably vote for my tax-cutting blue dog Senator Feinstein and representative. But we should learn from our mistakes, so that we don't repeat them.
The guy was a nobody in 2004. I voted for Hillary in the primary. I thought he was pretty smart, but if he was as smart as everyone said he was in 2008, he still would have been smart in 2016, 2020, 2024... he's really young. He should have been vetted out longer.
I don't think he's very smart, just based on the extension of Bush's tax cuts after the 2010 election. He could have worked out all sorts of spending and targeted tax breaks for all sorts of different industries, and the GOP donors would have demanded that their representatives vote to get them their gravy. And the stimulative effect would have been greater heading into the 2012 election.
Or maybe he had the foresight to see what boobs the GOP was going to parade for their nominees...
He's smarter than me, though. I don't see him posting here.
If Obama needs a post-Presidential income, he can always become a professional singer. I actually think he is a very smart guy and has shown that in school and work where the people around him have all said that he was the brightest guy in the room. Smart is not always measured in bold. He is careful, and he may be so smart that he sees how bold will get him out on a limb whereas getting his opponents out on a limb allows him to work from the center as he saws them off. We will know more after the second term, which is now almost a done deal thanks to the GOP clown parade.
Even the guys they talk about coming in on a brokered convention have gone nutty. Christie and Daniels, for example. Nobody wants the third Bush. No woman from the Right has popularity. I mean, it is an empty pit.
As Thom explained, however, this is about getting jobs back from overseas. It is also about collecting some money instead of having them loophole it all. Pressure for real tax reform has to be another thing. At some point, if we can find a way to believe in democracy, paying for it ought to be part of that instead of a toxic meme.
I've noticed that the top 1% prefer lowering tax rates in exchange for cutting out loopholes.
The "Fair Tax" for example is a flat tax for everybody of 15% or whatever with no loopholes.
They love this idea because they know that it is relatively easy to add loopholes later, which are done secretly "behind doors". It gives their thousands of lobbyists something to do to earn their salaries.
And I've noticed that once the top tax rates are lowered it is almost impossible to raise them because they turn their propagandists loose to brainwash the low-info voting public that "they want to raise YOUR taxes"
The only time you can raise top tax rates on the rich is in time of national distress like war or the Great Depression. But now the GOP is so extreme they LOWER taxes on the rich even during WAR!
As if any of us are going to read through the full proposal and make an accurate assesment of what will happen with corporate taxes...the president is one wiley character though. I'd hate to have him as an opponent. He's too smart for me and way too smart for the Government Oppressing People
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