President Obama may have another massive tax cut in the works – this one for America’s giant corporations. The White House may be considering cutting the 35% corporate tax rate next year. The rate is the highest in the world – but with so many loopholes in the law – most companies don’t pay nearly 35%. Also – as most businesses divert their profits into the hands of individuals who play some of the lowest income taxes in the world – many corporate profits go completely untaxed. Last year - Exxon Mobile – the most profitable corporation in the history of the world - and General Electric paid no corporate taxes. In fact – 85% of all corporate tax revenue comes from only one half of one percent of companies – about 10,000 businesses in all. This may actually be a good idea though – if President Obama does indeed close some of the loopholes that plague our corporate tax structure. The best way to do that – stop giving tax breaks to companies that ship American jobs overseas. Not only will the federal government raise more revenue to offset the lowering of the corporate tax rate – it will encourage business to stay in the United States. It’s time for meaningful tax reform – not giveaways to companies who can hire the most lobbyists.
Stop giving tax breaks to companies that ship American jobs overseas....
Dec. 30, 2010 2:07 pm