Corporate tax overhaul slips into the debt debate
Gene Sperling and Tim Geithner
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The Obama administration is preparing to inject an unpredictable new variable into its economic policy clash with Republicans: a plan to overhaul corporate taxes.
Economic advisers have nearly completed the process initiated in January by the Treasury secretary, Timothy F. Geithner, at President Obama’s behest. That process, intended to make the United States more competitive internationally, has explored the willingness of business leaders to sacrifice loopholes in return for lowering the top corporate tax rate, currently 35 percent…
So far, administration officials have been encouraged by support among business leaders for the tradeoffs needed for rate reduction. Whether that survives the legislative process in Congress is another matter.
Since the essential function of Republicans is to lobby for their personal sources of funding, devising loopholes for whichever corporate mafia they’re “made” for – I expect there will be little cooperation from the Republican Party.
“The question is, Is the business community going to support this because it’s a win for the economy over all?” said Gene Sperling, director of Mr. Obama’s National Economic Council. “Or, is it going to get held up because each business will decide whether they’re a temporary winner or loser compared to the status quo…?”
The current system taxes only about half of business income, because many enterprises, particularly small ones, are organized to pay taxes under the income tax code for individuals. The Republican chairman of the tax-writing House Ways and Means Committee, Rep. Dave Camp of Michigan, says corporate taxes should be changed only in tandem with an even more politically daunting overhaul of the tax code for individuals.
Which is how most of the thugs in Congress think of balancing the budget. Screwing the middle class, taking back entitlements fought for by generations of working people is the way these hacks prefer to maintain their welfare plan for the Pentagon and “Free Enterprise”.
Even the concept of Congress as corporate flunkies should be foreign to anyone of conscience in this land of capitalism – but, that ain’t how it works. If your company gets big enough, successful enough on its own, sooner or later the most important task becomes budgeting for the purchase of politicians.