Quote:
Originally Posted by Azure
Obama used it very well during his campaign run, while conveniently ignoring, along with the rest of the Washington, that closing the loopholes and lowering the overall corporate tax rate to make it competitive with the rest of the world would give you more than enough revenue to balance the budget. Of course, the fact that they're ignoring that point that would suggest that Washington has been taken over by Wall Street, which I'm sure is a completely ridiculous notion. No way big business and the government would be in bed.
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This is factually inaccurate. Obama actually proposed to do
exactly what you're suggesting (lower the corporate tax rate but offset the lost income by closing loopholes) earlier this year. His plan was, of course, rejected by the Republicans.
http://www.reuters.com/article/2011/...70P1GX20110126
Quote:
U.S. President Barack Obama called on lawmakers on Tuesday to work with him to cut the corporate tax rate, but his pitch to offset lost revenues by slashing tax breaks cherished by companies could stall the effort.
"I'm asking Democrats and Republicans to simplify the system. Get rid of the loopholes," Obama said in his State of the Union address to a joint session of Congress. "A parade of lobbyists has rigged the tax code to benefit particular companies and industries."
[...]
The president has proposed cutting tens of billions of dollars in corporate tax preferences in his first two budgets, and on Tuesday he repeated his call for eliminating what he terms loopholes.
Among the business tax benefits Obama wants to scrap are those letting companies defer taxes on income earned abroad. Corporate America -- especially pharmaceutical and technology companies and multinationals like General Electric Co -- prize these tax provisions.
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