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View Diary: Grand Bargain 2.0: Obama to offer tax cuts in exchange for investment in jobs (152 comments)

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  •  Isn't the Effective Corporate tax rate already 12% (4+ / 0-)
    Recommended by:
    tardis10, HeyMikey, aliasalias, emal

    or thereabouts?

    Growth for the sake of growth is the ideology of the cancer cell. --Edward Abbey

    by greenbastard on Tue Jul 30, 2013 at 07:44:41 AM PDT

    •  "Too high. My yacht needs another swim-spa." (4+ / 0-)
      Recommended by:
      Capt Crunch, Aspe4, rbird, mightymouse

      /Richie-Rich Corporate Bastards

    •  GAO says it is 12.6% (3+ / 0-)
      Recommended by:
      Capt Crunch, HeyMikey, emal

      Growth for the sake of growth is the ideology of the cancer cell. --Edward Abbey

      by greenbastard on Tue Jul 30, 2013 at 07:49:45 AM PDT

      [ Parent ]

      •  the goal is to get it to -12.6% n/t (1+ / 0-)
        Recommended by:
        lostinamerica
      •  As that (2+ / 0-)
        Recommended by:
        mmacdDE, HeyMikey

        article clearly points out,the rate is that low because of all the loopholes, credits and havens written into the tax code.

        Which is why the President is proposing eliminating enough those to raise tax revenues even with lower rates.

        This would mean for some industries like oil and gas would pay much more in taxes even with lower rates.

        The net effect would be a tax increase,which would raise enough revenue to fund the jobs programs and educational programs.

        Now, it seems many folks on here seem to think this a horrible idea to raise tax revenues from corporations to fund jobs programs...mainly because it is the President suggesting it.

        These days, there is a reflexive rejection of anything the President supports on here.....the worm has turned.

        •  No it isn't about the President (1+ / 0-)
          Recommended by:
          HeyMikey

          It's about getting loopholes in the tax code is easy. So you lower the rate and remove loopholes, and then loopholes are reinserted, because loopholes are almost always riders on other bills.

          Growth for the sake of growth is the ideology of the cancer cell. --Edward Abbey

          by greenbastard on Tue Jul 30, 2013 at 09:07:26 AM PDT

          [ Parent ]

          •  So what is (2+ / 0-)
            Recommended by:
            HeyMikey, artmartin

            your solution?

            Just let the biggest richest companies have their way with their loopholes and raise the rates on the smaller corps?

            Just throw up our arms and give up?

            Is tax reform even worth the effort at all?

            •  Best comments of diary. Nominal v. effective rates (3+ / 0-)
              Recommended by:
              artmartin, emal, nchristine
              As that article clearly points out,the rate is that low because of all the loopholes, credits and havens written into the tax code.

              Which is why the President is proposing eliminating enough those to raise tax revenues even with lower rates.

              This would mean for some industries like oil and gas would pay much more in taxes even with lower rates.

              And Hawkjt has put his/her finger on the crux of the corporate-tax rate debate. The right complains loudly that the USA has a high corporate tax "rate"--which is true. And we on the left complain that corporations pay too low a share of taxes--which is also true. Because, as Hawkjt points out, the generous deductions/credits/loopholes more than make up for the high nominal rate.

              Greenbastard points out:

              you lower the rate and remove loopholes, and then loopholes are reinserted, because loopholes are almost always riders on other bills.
              That's exactly what happened with the Reagan-era tax reform, which is why the national debt continued to explode until Clinton raised nominal rates.

              I come down in favor of Obama's proposal, for two reasons:

              1. We clearly need a jobs program. That's the highest priority.

              2. Regardless of whether nominal rates stay high or get lowered, Congress is likely to go on creating & enlarging various deductions/credits/loopholes. May as well grab whatever temporary improvement we get the opportunity for.

              "The true strength of our nation comes not from the might of our arms or the scale of our wealth, but from the enduring power of our ideals." - Barack Obama

              by HeyMikey on Tue Jul 30, 2013 at 10:30:37 AM PDT

              [ Parent ]

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