An honest politician stays bought

Obama to propose lowering corporate tax rate to 28 percent

President Obama on Wednesday plans to propose a major overhaul of the nation’s corporate tax code, an election-year gambit that is likely to draw a contrast over a key policy issue with the Republicans vying to replace him.

Obama will propose lowering the nation’s corporate tax rate to 28 percent. At the same time, however, he will seek to increase the amount of revenues raised overall through corporate taxation by eliminating numerous deductions and loopholes that save companies tens of billions of dollars a year on their tax bills, according to a senior administration official.

Today, the U.S. corporate tax rate of 35 percent is one of the highest in the world, but an abundance of loopholes and deductions means that many companies pay far less than that — or nothing at all. Companies in the United States pay almost half the taxes than companies do in other rich countries, compared to the size of the economy, according to the Organization for Economic Cooperation and Development.

In his proposed rewrite, Obama will target oil and gas companies for tax hikes while promising special breaks for manufacturing companies, according to a senior administration official.

You watch – when the smoke clears the rate will come down but most of the loopholes and deductions will stay. Worst of all, the Republicans won’t have to take the blame for it.

Skunks don’t change their stripes. Obama is the number one beneficiary of corporate campaign donations. Pay to play is the Chicago way.

This entry was posted in Barack Obama, Crony Capitalism, Disingenuous Democrats, Federal Deficit, Taxes and tagged , . Bookmark the permalink.

17 Responses to An honest politician stays bought

  1. votermom says:

    OT, Myiq, I skedulated a post – you can adjust the time if needed. Thanks.

  2. votermom says:

    Yeah, the problem is not just the high tax rate but the unfair market that the loopholes create. Asia used to be the place where it was hard to do business because of all the bribes that had to be paid. Now it’s the USA.

    If we lowered the corporate tax rate drastically but also removed the loopholes & waivers etc, we would encourage honest businesses to come in and compete.

    • Lulu says:

      Tax loopholes are part of the problem. Another is Obamacare and and what it will do which many are just now finding out. It has thrown every kind of business into a loop and they do not know what to expect since most of it is not even worked out. The legal system with Obama and Holder is corrupt and business cannot function with a rigged legal system. And finally is the the Obama system of favoring contributors and rigging everything from permitting, to loans, to approving or disapproving mergers to punish enemy competitors of his cronies. More and more of this is coming out even though the press is trying to suppress it. It is freezing all kinds of economic activity because no one knows who he will punish next.

    • JeanLouise says:

      What’s the point if they don’t pay any taxes? I should pay income and gas taxes so that rich corporations have a good roads and a standing army amd they pay nothing? That’s a a fast ride to a Third World country.

      • votermom says:

        I get the “it’s not fair” complaint BUT the problem is that corporations can quite easily move elsewhere (as they already have) to places where they pay less in taxes and bribes. And then the people left behind lose employment opportunities.

        It’s much harder for people to emigrate. As an immigrant from a 3rd world country, I know this very well. I was lucky to be in the right place, with the right skills, of the right age, at the right time, to get that chance.

        So yeah, if this were kindergarten we’d say let everybody pay a fair share and nobody is allowed to misuse funds and everything will be sunshine and puppies. But places that do that end up like NJ & CA.

        You can lower or eliminate corporate taxes and still get income taxes from the people who derive income from that corporation. Most people I know do not mind paying taxes if they see it being used wisely – roads, utilities, etc etc.

  3. DeniseVB says:

    Does OWS approve of this ? Last I checked, it was about sticking it more to the evil corporations and giving it to them. How will they ever achieve their economic justice goals? I’ll wait ™

  4. yttik says:

    Lower the corporate tax rate, but get rid of several deductions? So this basically means corporations go right on paying what they’ve always paid. This is just moving things around on paper, but making no real changes so businesses are simply left with more confusion and uncertainty.

    “Obama will target oil and gas companies for tax hikes”

    Uh, yeah. Gas is already expected to reach five dollars a gallon this summer. Tax hikes aren’t going to be paid by oil and gas companies, they’re going to be paid by us. This will raise our food prices and our electric bills.

    God, I wish we had a policy wonk in office who understood how things trickle down.

    • Karma says:

      Yup, it will all land on the small business owners…yet again. And iirc, small businesses add up to 70% of jobs in the US. So fun times ahead.

      As of last week fuel surcharges were 30% of the load. And those hikes tend to lag the actual fuel price hikes. Companies are also passing those costs down to the consumers much faster than they did previous to the 2008 economic meltdown.

  5. DeniseVB says:

    Don Surber’s not worried about Obama’s poll numbers

    President Obama’s leads of 5.7% to 13.9% over each candidate do not scare me. In fact, they are rather puny.

    At this point 8 years ago this month, John Kerry was ahead of Bush by 12 points in the Gallup Poll: 55%-43%.

    And in January 1980, the Gallup Poll showed:

    Carter 63%
    Reagan 32%

    • Three Wickets says:

      He’s kind of right. At this point, any poll looking at Obama vs Repubs probably means little since we’re in the midst of Repub primaries and loyalties are spread thin. That includes the polls looking at Obama vs generic Republican. Half the electorate don’t identify with either D or R party these days.

  6. djmm says:

    Excellent post, myiq! I wish we had a Democrat running for President this year…


  7. Three Wickets says:

    They’ve kicked the can down the road on the question of taxing offshore profits of US multinationals. There’s lot of money there and also big policy implications re corporations making domestic US investments, jobs, etc. It’s a pretty fundamental debate between the interests of workers and that of investors. I’m betting issue won’t come up for the rest of the year, and ultimately corporations and investors will win out.

  8. Three Wickets says:

    Is Obama trying to kill private equity?

    Again, this isn’t going to become law. But it is going to be an interesting campaign issue, particularly if one candidate is trying to make life more difficult for most of the other candidate’s former colleagues.

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