By JIM KUHNHENN Associated PressWASHINGTON February 22, 2012 (AP)
President Barack Obama is proposing to cut the corporate tax rate from 35 percent to 28 percent and wants an even lower effective rate for manufacturers ... In turn, corporations would have to give up dozens of loopholes and subsidies that they now enjoy. Corporations with overseas operations would also face a minimum tax on their foreign earnings. The corporate tax plan dovetails with Obama's call for raising taxes on millionaires and maintaining current rates on individuals making $200,000 or less.Common Sense thinks this makes, well, common sense. US corporate tax rates are to high compared to other industrialized nations, though it should be noted that almost no corporations actually have tax rates anywhere near 35% because of many loopholes, subsidies, and tax breaks. Thus cutting tax breaks makes sense, particularly for big oil (see Wingnuts, entertainment, and the media). Taxing foreign earnings might make it more attractive for US firms to focus on US jobs perhaps doing something about the US jobless rate. Asking the wealthy to pay their fair share is just common sense particularly in light of what happens to societies with high income disparities. In short, the proposal has much to recommend it and Common Sense thinks it should become law.
Sadly, it's an election year and the country is encumbered with a radical do nothing Congress. But one can always hope that faced with an election and a 9% favorablity rating Congress might actually get serious about doing what is good for the nation.
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