As the United States recovers from a historic recession, one faction President Obama wants to siphon more tax funds from is corporate America. Today, the President launched a dialogue with businesses by proposing to lower the top corporate tax rate to 28 percent from 35 percent in a compromise that would eliminate a number of tax breaks and so-called loopholes that allow many corporations to legally avoid paying various taxes. The proposed tax plan would increase corporate tax revenue overall, but limit the percentage of the top tier rate. Experts expect corporations to lobby against many of the proposed changes. Some critics label Obama’s proposal as a strategic campaign move that will never come to fruition, especially during an election year, and that the proposal is simply a tactic for countering Republican politics.
Is Obama simply making a rhetorical campaign move to win political support or is he honestly trying to improve the corporate tax structure? Is it time for the U.S. to lower the corporate tax rate in light of its ranking as second highest in the world? Or are corporations being greedy by trying to have their cake and eat it too?
Josh Boak, Economy Reporter for POLITICO
Alex Brill, research fellow at the American Enterprise Institute, he was policy director and chief economist at the House Ways and Means Committee and he worked at the White House Council of Economic Advisors
Jared Bernstein, Senior Fellow, Center on Budget and Policy Priorities and former chief economic adviser to Vice President Joe Biden