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Thursday, February 23, 2012

Time to sunset corporate tax loopholes
AP Photo / Charles Dharapak

In an election year, it’s no surprise that President Obama’s proposed changes in business taxes have been rudely received by congressional Republicans. Once again, the public’s eagerness for bipartisanship is ignored.

But Obama knew the likely reception he would get, so he is being accused of playing politics, too, by offering the opposition something they had to refuse or risk being seen as cooperating with a president they are trying to convince voters isn’t worthy of reelection. That means more to them than a fairer tax code.

Obama released what he called a “framework” for tax reform Wednesday, clearly indicating it is a work in progress, a program that can be made better through collaboration. But politics being what they are, especially in an election year, the loyal opposition responded as if the president were trying to force bad-tasting medicine down their throats.

Instead of giving Obama credit for proposing a reduction in the top corporate tax rate to 28 percent, from 35 percent, they cried that it wasn’t enough, saying that when you include state taxes, the combined U.S. rate might drop below those of Japan and France but would still be above the United Kingdom’s and Germany’s.

More howls were directed at Obama’s suggestion that he could pay for the corporate rate-cut by getting rid of some of the loopholes businesses now use to pay little or no federal taxes. In particular, the president wants to remove tax breaks for companies that move jobs overseas. He would require any company operating overseas to pay a minimum tax rate on its foreign earnings.

The General Accounting Office reported in 2008 that 55 percent of all U.S. companies paid no federal income tax for at least one year in a seven-year period. But that isn’t keeping defenders of current tax loopholes from vowing to defend them against any potential assault by Obama.
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Posted by Inquirer Editorial Board @ 3:00 AM  Permalink | 4 comments
Comments   
  • 0 like this / 0 don't   •   Posted 5:45 AM, 02/23/2012
    Make the rate zero. Why not, half the people in this country don't pay income tax.
    — journalismIsDead
  • 0 like this / 0 don't   •   Posted 7:29 AM, 02/23/2012
    Obma sings and the Editorial Board dances into action. Where have you been? It's no surprise Obama wants to fiddle in an election year. Japan is dropping it's corporate tax rate this summer which will make the US corporate tax rate the highest in the world.
    — tr88
  • 0 like this / 0 don't   •   Posted 7:30 AM, 02/23/2012
    And half of the people in this country pay NO taxes yet take the lions share of the services. Kickin it the Philadelphia way.
    — tr88
  • 0 like this / 0 don't   •   Posted 10:56 AM, 02/23/2012
    obama knows how to get elected (or re-elected). he just doesn't know what to do afterwards !
    — the_chief


4 comments
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