“Over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change.”
– President Obama, January 25th 2011
It remains to be seen whether or not there’ll be some action to back up his remarks last night, but in a widely anticipated move, President Obama addressed the fact that we should be closing loopholes and lowering the corporate tax rate.
While not exactly the highest in absolute terms at 35% (explained here by Politifact), we’re certainly up there. Even Japan has cut their corporate tax rate by 5%.
From the Wall Street Journal:
A corporate-tax revamp appeals to the White House because it is one of the few policy options available that might help economic growth without deepening the deficit. It also could help the administration revive its battered relationship with companies. And few dispute the notion that the corporate tax code has grown into an unwieldy beast that is out of step with other major economies in key areas, such as how it taxes companies’ overseas income.
Simplifying the code and easing the burden on job creating companies is a no-brainer at this juncture and Obama gets it. Good.