Cutting The Corporate Tax Rate?
By Pejman Yousefzadeh Posted in Economy — Comments (3) / Email this page » / Leave a comment »
The White House appears to have a hankering to do just that:
President Bush said yesterday that he is considering a fresh plan to cut tax rates for U.S. corporations to make them more competitive around the world, an initiative that could further inflame a battle with the Democratic Congress over spending and taxes and help define the remainder of his tenure.
Advisers presented Bush with a series of ideas to restructure corporate taxes, possibly eliminating narrowly targeted breaks to pay for a broader, across-the-board rate cut. In an interview with a small group of journalists afterward, Bush said he was "inclined" to send a corporate tax package to Congress, although he expressed uncertainty about its political viability.
The president's comments came as he tried to calm volatile stock and mortgage markets and reassure the country that the economy is fundamentally strong. Despite mounting concern over the downturn in the housing market, he dismissed proposals advanced by prominent Democrats to grant government-chartered Fannie Mae and Freddie Mac more freedom to buy mortgages and mortgage-backed securities. And he ruled out any taxpayer bailout of lenders threatened by the subprime home-loan crisis.
I am perfectly fine with a corporate tax cut. I'm just not sure that it is going to happen in the current political environment. I really have a hard time believing that Democrats in Congress would let such legislation go through. And from what the story indicates, they won't.
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Cutting The Corporate Tax Rate? 3 Comments (0 topical, 3 editorial, 0 hidden) Post a comment »
...they collect them in the form of higher prices, reduced wages, and reduced profits, and remit them to the state. Basically, what we're doing when we tax corporations is requiring them to be another tax collector.
The folks who really pay these taxes are:
-customers (in the form of higher prices)
-workers (in the form of reduced wages, maybe fewer job opportunities)
-owners (in the form of reduced profits, foregone investment in business).
The right corporate tax rate is zero.
FairTax would drop the Corporate Tax Rate to ZERO.
Bush just continues to play around the edges of what needs to be done.
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Eliminate the IRS and all payroll taxes! http://www.fairtax.org
of the G-7 countries. The trend in Europe has been to decrease corporate taxes - France, Germany etc. We are the outlier with the government greedily holding on to yesterday's failed policies.
Corporations (along with their jobs) will continue to leave the U.S. until we decrease corporate taxes.
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"Enlightened statesmen will not always be at the helm." -- James Madison