Congressional Republicans have been calling for less taxes on Corporations. Doing this they claim, would stimulate more hirings, thus more jobs. Well the President has listened to their calls and today, the administration announced a plan to reduce the Corporate tax rate from 35% to 28%.
“Obama’s plan would be part of a larger effort to overhaul the U.S. tax system and it dovetails with Obama’s call for raising taxes on millionaires and maintaining current rates on individuals making $200,000 or less.
“While the 35 percent nominal corporate tax rate ranks among the highest, 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.”
Sounds like a win win situation. Republicans get their Corporate tax cuts and President Obama get to close corporate loopholes. But don’t expect anything to get done, as Republicans will not agree to do anything this president proposes even if the proposal is one of their own. And ending Corporate loopholes is not something Republicans’ to-do list.