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View Diary: “No End In Sight” (147 comments)

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  •  He proposed a tax plan back in February that (0+ / 0-)
    ""WASHINGTON -- President Barack Obama and Mitt Romney have begun a new form of competition: proposing corporate tax cut plans that they claim, wrongly, won't cost the Treasury a dime. Almost immediately after Obama unveiled his plan on Wednesday, one of the nation's leading tax policy experts threw cold water on the administration's claim that its tax overhaul could be implemented "without adding a dime to the deficit." A separate plan released Wednesday by Republican presidential contender Romney, the expert said, would almost certainly expand the deficit.

    The Treasury Department on Wednesday laid out a set of principles for rewriting the corporate tax code. The plan would increase the amount of money the government collects from companies by closing loopholes, but would lower the basic corporate tax rate from 35 to 28 percent. It would also require companies that stash money in offshore tax havens to pay a minimum amount in tax every year and provide a special tax break for manufacturing businesses. "

    I"n the past three years, 30 of the nation's largest corporations have paid zero federal income tax. Less than 10 percent of total U.S. tax revenue currently comes from businesses. For much of the 20th century, that number was closer to 30 percent. As a percentage of total American economic output, corporate tax collections are at historical lows.

    Overall, the tax cuts proposed by the Treasury Department would cost about $1.2 trillion during the next decade. The Obama administration outlined plans to narrow that deficit by $300 billion by closing certain business tax loopholes, but roughly $900 billion in other offsets was left unspecified."

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