What Everone Needs to Know About Obama's Costly Corporate Tax Cut, and How to Fix It:

[grahamhgreen]

As we work to get Obama re-elected, let's also put pressure our Rep's to fix this latest tax decrease on corporations which will increase the burden on the rest of us.

Here is the critical issue, CUTTING THE RATE AND CLOSING LOOPHOLES WILL DECREASE REVENUES!

From the NYT:

"An analysis in November from Congress’s nonpartisan Joint Committee on Taxation, which was requested by House Democrats, reported that even if every corporate tax break were scrapped, the 35 percent corporate rate could not be reduced below 28 percent without adding to deficits. Republicans disputed that, citing a group of relatively obscure tax breaks that the Congressional analysts did not count.

Even so, the administration and Congress would have a political and mathematical challenge in eliminating or reducing tax breaks enough to lower corporate rates as they propose to do without adding to deficits. Underscoring the difficulty, just two popular tax breaks — for accelerated depreciation of businesses’ capital investments and write-offs of research and experimentation costs — account for the bulk of the revenue the government foregoes to benefit corporations.

Not only are those two provisions unlikely to be repealed; the Obama administration and both parties in Congress also support making a separate research credit permanent. " http://www.nytimes.com/2012/02/22/business/economy/obama-offers-to-cut-corporate-tax-rate-to-28.html?_r=1&pagewanted=all

So, Obama has proposed a straight up tax cut to the very same corporations that are corrupting our democracy and outsourcing our jobs.

How to make sure this doesn't happen: We must make sure that any proposal is vetted and scored by the Joint Committee on Taxation and the OMB. Any proposal that does not come out with a net tax gain must be scrapped, seems to me.

[xchrom]

1. Du rec. Nt

[izquierdista]

2. The two choices

Stick with Obama, who will gradually let the ship of state sink beneath the waves, allowing people time to try and find a lifeboat, OR go with the Repubs, who will open all the compartment doors to take on water as quickly as possible.

[stillwaiting]

3. It really does feel that way to me.

Nice analogy.

His proposal to cut corporate tax rates flat out disturbs me.

The loopholes WILL be added back in directly within the corporate tax cut legislation itself and/or shortly thereafter in subsequent legislation.

Corruption is legalized in this country, and I have no doubt that would be the outcome. None.

[ProSense]

4. I'm sure

"CUTTING THE RATE AND CLOSING LOOPHOLES WILL DECREASE REVENUES!"

...the people pushing this idea want everyone to believe that. From the NYT piece:

One analysis concluded that 115 of the 500 companies in the Standard and Poor’s stock index paid a total corporate tax rate — federal and otherwise — of less than 20 percent over a five-year period. A study by the Government Accountability Office in 2008 found that 55 percent of American companies paid no federal income taxes during at least one year in a seven-year period it studied.

If all these companies, which are now paying no tax or less than 20 percent, paid 28 percent every year, revenues would increase. That's math.

30 Major Corporations Paid No Income Taxes In The Last Three Years, While Making $160 Billion
http://thinkprogress.org/economy/2011/11/03/360185/30-corporations-no-taxes/

I mean, only about three industries are paying above 28 percent, and most are paying less than 20 percent.





Oil and Gas Industry Pushes Back on Obama Tax Plan
http://www.democraticunderground.com/1002344514

[MannyGoldstein]

7. Baby... bathwater...

An aggregate tax cut is an aggregate tax cut.

[ProSense]

9. Well,

"Baby... bathwater...An aggregate tax cut is an aggregate tax cut."

...math...logic...28 percent > 0 or 20 percent.

[Ikonoklast]

15. If you lose your deduction for mortgage interest, but your tax burden is lowered from 35% to 28%,

having the effect of you paying the exact same amount in taxes, explain to me how that is a tax cut when the government collects the same amount in revenue.

It really isn't, is it, as far as you're concerned; the rate is numerically lower, but your exposure to tax liability remains essentially the same after losing your deduction for mortgage interest paid.

Lower rate, less deductions, and makes corporations go from paying *zero* in taxes due to huge loopholes, to paying their fair percentage.

[grahamhgreen]

12. Can we agree to get the proposal scored by CBO before it is passed, just to make sure that we will

have a net gain, or at least not have a loss?

[MannyGoldstein]

5. "Make No Mistake: we need to cut corporate tax rates to

increase tax revenue. We need to send hundreds of thousands more jobs overseas through new "free" trade agreements to increase American jobs. And we need to slash Social Security benefits to "strengthen" it.

Hey... who the @#$% else ya gonna vote for?"

[ProSense]

6. You

Hey... who the @#$% else ya gonna vote for?"

...should answer that question.

I'm voting for Obama. How about you?

[MannyGoldstein]

8. I'm voting for the candidate

that best represents Democratic ideals.

[ProSense]

10. So

"I'm voting for the candidate that best represents Democratic ideals."

...does your candidate have a name? Or are you afraid to say?

[woo me with science]

11. Until we recognize and identify the collusion,

until we recognize and identify and resolve to take action against the real problem here, the purchase of our government by both parties, this will continue to happen.

I wholly support your post. There is a larger lesson, here, too. We observe collusion again and again and again and again and choose not to name it.

This is an assault on us by our Democratic President and the Democrats and Republicans in Congress, together. This was not a cave or a mistake or an unfortunate accident. This happens every day, and will continue to happen every day until we stop it. We must get the corporate money out of the system.

Occupy.

[bvar22]

13. What will be left after the inevitable "compromise"?

My best guess based on past performance:

*Lower Corporate Tax Rate approved

*One or two token loopholes closed, but most remain,
or ambiguous wording allowing them to be circumvented added
to the bill.

*The Administration claims a "historic" victory,
and showcases what they call "A Step in the Right Direction",
but the RICH still get RICHER, and the Working Class still pays the bill.



You will know them by their WORKS,
not by their excuses.
[font size=5 color=green]Solidarity99![/font][font size=2 color=green]
--------------------------------------------------------------------------------------------------------------------------------[/center]

[grahamhgreen]

14. Agreed. I think getting the thing scored by the CBO is one way we might be able to avoid what looks

like the inevitable.

Unfortunately, we are stuck with the situation we have, so I don't know what else we can do.

[MisterP]

16. talk like a Pastore, sting like a Blair!

[Motown_Johnny]

17. I thought the CBO numbers had it as revenue neutral?

I will need more information on this one. I like the idea of the minimum tax for corporations and hope to see it expanded beyond multi-national corporations in the future.

[grahamhgreen]

18. The final proposal will have to be vetted. This report indicates

that unless we close ALL the loopholes, it will be a zero sum gain.

Ideally, we should close the loopholes first and then see about lowering taxes.

Even more ideal would be to increase the income we are getting from those that have the money, IMHO.

[Motown_Johnny]

19. You are right, but the politics is better with a revenue neutral plan

because the (R)s oppose everything Pres. Obama supports this puts them in a position to argue for something most people will disagree with.