Momentum Builds for Corporate-Tax Overhaul

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The White House and congressional Republicans are moving from different directions toward a consensus that the U.S. corporate tax code needs a fundamental overhaul, a goal high on corporate leaders' agenda.

Specific proposals for retooling the complex corporate-tax system aren't on the table and the debate over the issue is sure to be lengthy and difficult. But President Barack Obama and Republican congressional leaders are separately sounding the same broad theme that corporate tax rates should be lower.

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Mr. Obama has expressed a willingness in recent interviews to have "a conversation" this year about lowering corporate-tax rates, while reducing the number of tax breaks.

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Executives on Mr. Obama's Export Council last month said the U.S. corporate-tax code, with its top rate of 35%, puts U.S. companies at a disadvantage against rivals from countries where tax rates are lower. To be sure, many companies don't pay that top rate. The panel recommends a federal rate of 20%.

A blue-ribbon fiscal commission appointed by Mr. Obama also recommended sharply lower corporate tax rates, along with elimination of targeted business tax breaks.

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Obstacles to a deal to revamp corporate taxes include the likelihood corporations will fight to keep tax breaks that work to their benefit, and White House concerns that any tax overhaul not result in less revenue.

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Republicans, however, are unlikely to support a plan that ... expect businesses to give up enough of their tax breaks to hold revenues flat.

http://online.wsj.com/article/SB10001424052748703675904576064052401692010.html?mod=WSJ_Election_LeftTopStories

[Gary and Alla 3,694]

The corporate tax code should be placed in the nearest non-flammable container (metal trash can) and ignited.

Corporations do not and in fact, CAN NOT pay tax. They can ONLY collect tax from someone else...employees, customers or share holders, all individuals, and send it to the government. If we had the LOWEST corporate/business tax rate in the world (I suggest -0-) rather than the 2nd highest, we would be the Go-to place for business and we could call "cutomer service" and actually get the phone answered in the USA. Imagine that! The foreigners that took our jobs when our government ran them off with taxes are not contributing to our economy.

[Mr. Big Dog 10,747]

If we had the LOWEST corporate/business tax rate in the world (I suggest -0-) rather than the 2nd highest, we would be the Go-to place for business and we could call "cutomer service" and actually get the phone answered in the USA.

Yep, they've done that (low corporate tax competition) in Ireland and it worked out just great. Oh wait, Ireland had to take a bailout to avoid going under.

[Gary and Alla 3,694]

Yep, they've done that (low corporate tax competition) in Ireland and it worked out just great. Oh wait, Ireland had to take a bailout to avoid going under.

Yep, they've done that (low corporate tax competition) in Ireland and it worked out just great. Oh wait, Ireland had to take a bailout to avoid going under.

They eliminated corporate tax of all types in Ireland?

[Dan J 277]

Yep, they've done that (low corporate tax competition) in Ireland and it worked out just great. Oh wait, Ireland had to take a bailout to avoid going under.

There are quite a few large companies using Ireland as a way to avoid income taxes in countries with higher tax rates. Using a Double Irish arrangement, companies only end up paying about 2.5% effective tax rate.

[luckytxn 2,265]

Yep, they've done that (low corporate tax competition) in Ireland and it worked out just great. Oh wait, Ireland had to take a bailout to avoid going under.

Wouldn't be because they also have very generous Socialist programs, right?

I wouldn't mind if they raised the taxes on corporations there and especially the companies that came there and brought many jobs to them. I am sure those companies would stay there and operate for the welfare of the citizens.

[Mr. Big Dog 10,747]

There are quite a few large companies using Ireland as a way to avoid income taxes in countries with higher tax rates. Using a Double Irish arrangement, companies only end up paying about 2.5% effective tax rate.

Sure. But what has that done in terms of jobs for the Irish and for the Irish revenue? Exactly, not a heck of a lot.