Obama to propose corporate tax rate of 28 percent

[dipsydoodle]

This discussion thread was locked as off-topic by racaulk (a host of the Latest Breaking News forum).

(Reuters) - The Obama administration on Wednesday will propose cutting the top tax rate for corporations to 28 percent, and pay for it by eliminating dozens of tax loopholes companies now use to lower their rates, a senior administration official said.

Chances of a deeply divided Congress revamping a tax system regarded as convoluted across the political spectrum seems remote in an election year, but the announcement is certain to fuel debate in the run-up to November's elections.

The plan, over a year in the making, is President Barack Obama's first official foray into overhauling the tax code, which most experts believe badly needs a revamp after years of being loaded up with special provisions.

The centerpiece is a cut in the top corporate rate - now at 35 percent, among the highest in the industrialized world. That will appeal to businesses, which gripe that the current U.S. rate puts them at a competitive disadvantage.

http://www.reuters.com/article/2012/02/22/us-usa-tax-corporate-idUSTRE81K25N20120222

[AngryAmish]

1. Hope! Change!!!

[banned from Kos]

7. the effective corporate tax rate is now 12.1% due to exemptions and deductions

The system is broken and favors moving operations overseas for shelters.

If done properly 28% is a win for Democrats and workers and a loss for corporations who move jobs offshore.

[mac56]

10. +1

[nineteen50]

19. This moving over seas is extortion.

If you pay it will happen over and over again. Make all government, federal, state and local, contracts so that an increasing amount of American products and services must be used in filling the contracts. This will get corporations back to America the money hole of consumption.

[shcrane71]

20. Thank You. They didn't pay that 35% corporate tax rate anyway. n/t

[greymattermom]

11. corporations are people, right?

That is certainly a fair tax rate, then. Corporations should also be subject to the AMT.

[mac56]

2. Before the inevitable dogpile begins I have to say this is a pretty shrewd move.

Lowering the tax rate is a small price to pay for closing a good many of the loopholes. Besides, which Repo wants to go back to his or her state or district, and say they voted against lowering corporate taxes? It would be suicide.

[dipsydoodle]

4. It is indeed an astute shrewd move.

.

[sinkingfeeling]

14. +1

[dipsydoodle]

6. Get a life

you POS.

This is in response to a real nuisance you re-registers almost daily in order to post a spam advert.

[onehandle]

15. But they 'accept the paypal.'

You're just mad because, 'All your base are belong to us.'

[dipsydoodle]

16. Whoever this is

gets tombstoned every day or so. I doubt they ever pay anything.

[HughBeaumont]

5. That rate's going to be lowered and those loopholes aint'a going ANYwhere.

Our wages are going to be lowered even further, the inequality gap will widen and American workers will sit like compliant sheep and take it . . . because where ELSE ya gonna go?

Tax cuts are NOT an economic stimulus.

I have a feeling one or two more wealth-favoring moves such as this and things are going to get really ugly really fast for the parasites.

[woo me with science]

8. This is the takeover. You are exactly correct.

They have been building up to this. We are now in the stage of outright assault.

The tipping of Europe and the new war will be the culminating factors they need to justify restructuring everything, and we know what that restructuring will mean.

We are heading into a new age of serfdom, and our options will be submission or revolution. It's not going to be pretty.

[JJW]

9. It ain't easy raising a billion dollars for re-election

Most politicians would sell off the middle class to get elected into the DC millionaires club.

[onehandle]

12. I've heard an ad on talk radio promising corporations to reduce their tax rate to 2%, 1%, or Zero.

Some accounting firm.

Specifically naming President Obama as the 'cause' of their 'high' tax rates.

So after this reduction, taxpayers will be funding corporations even more.

[cstanleytech]

13. I would support it providing the loopholes are "all" closed so

that companies like GE cant weasel out of paying their taxes.

[grahamhgreen]

17. How 'bout we JUST CUT THE LOOPHOLES? What about the deficit? Deficit! Deficit! Deficit! Cut Taxes!

Sounds like another party I know.

Alright, I can compromise - cut the loopholes FIRST.

Then we'll talk about the other.

Problem is, we know how Obama compromises and winds up selling out our core values. Yes, I agree it is possible to come up with a net gain after closing loopholes and lowering taxes, I just don't see this President and Congress as able to deliver.

What we'll most likely wind up with is a tax bill similar to health care - a 2,000 page bill that corporate lawyers can drive truckloads of cash through.

Now, if the bill starts off like this - "No corporation shall pay less than 28% in taxes under penalty of the corporate board serving 20 years", I suppose that might be a start.....

[AnotherMcIntosh]

22. You're right. There is a problem. But can we say that "we know" or "we know how ..."?

We know. But some don't want that discussed.

[jpak]

18. If it increases tax revenue by closing loopholes and making them ALL pay taxes, then I'm all for it

yup

[AnotherMcIntosh]

21. Other than being a gesture that will help with the re-election, this will be meaningless unless

the offshoring of American corporate profits can be stopped.

The DISC rules were passed just a few months before Nixon went to China. This was in the early 1970's. Other let's-protect-the-super-rich-by-allowing-them-to-transfer-jobs-and-move-money-to-foreign-countries rules have been added over the years. That's the way that it has been for 40 years.

Increasing the corporate tax rates is a good idea. But the odds of actually changing the rules that allow money offshoring are slim to none. The big-money campaign contributors won't allow it.

[racaulk]

23. Locking.

LBN duplicate thread.

http://www.democraticunderground.com/101457797