By Roger Chartier
The corporate tax code is filled with loopholes and subsidies etc that are well managed by the corporations so as to effectively allow them to pay far less taxes than would be expected.
Multinational corporations are getting away accounting games to shift profits abroad.
The proposal that President Obama wants to send to Congress would be a shift from a top rate of 35% down to 28% and 25% for manufacturers.
Corporations are making huge profits with labor costs at about $2-3 dollars a day in China and some third world countries. Of course it would be expected that a corporation wants figure out the very best way to get as much money for themselves as they can but some oversight is needed here and a restructuring of the tax code as it relates to corporations.
Treasury secretary Tim Geithner, told a congressional committee last week that the idea of these proposed changes “will help level the playing field for businesses and allow the government to collect needed revenue while promoting economic growth.”
The history of this shows that in the past 5 years more than 100 top corporations paid below 20% in federal tax including other non-federal taxes.
So as the partisan war rages this will be another battleground in the GOP non co-operation motivated political conflict that only serves to hurt America.
The lobbyists for corporations defending their tax breaks will be the charging in again , “once more unto the breach” to staunch the flow of corporate profits.