Obama Seeks Executive Ways to Limit Tax Inversions

 

Am I crazy or does this have a remarkably easy solution that could probably bring in people from both sides of the aisle?

 

1) Reduce the overall corporate tax rate. It would instantly reduce the burden on smaller firms and probably lead to a boon in hiring.

 

2) Eliminate loopholes by simplifying the tax code.

 

It seems like this would immediately raise taxes on large companies abusing the loopholes in the current system and lower taxes on companies paying an exorbitant 35 percent.

 

I would think the right would be crazy about a reduced overall rate and the left would love eliminating huge loopholes that allow the country's largest companies to pay less than smaller ones. Am I missing something or is this just too easy for the current Congress and Chief Executive to wrap their heads around?

 

I think the president has already said he's support something like this (which probably doomed it from the beginning), but with a system in which two hypothetical companies are incorporated in the same way under the same law and under which Company A is paying a full 35 percent while Company B is paying practically zero, something needs to change.

Carrot or stick?

 

I think you're onto something here trying to split the difference.

 

But we don't have 10 people in congress smart enough to work this out.

I think Rand Paul's plan which is similar to what you stated would work.

I think Rand Paul's plan which is similar to what you stated would work.

 

My guess is that the first stumbling block is the matter of which party gets to claim victory. If it looks like Rand Paul's plan, Democrats hate it. If it looks like President Obama's plan, Republicans hate it.

 

My guess is that they would also have quite a row over which things in the tax code are "loopholes" and which ones aren't. And the lobbyists would be ALL OVER that process.

I read an article the other week that talked about how the US has the highest corporate tax in the world. The article mentioned how a lot of people don't realize how high the corporate tax in the US really is. It mentioned many people who do see how high it is think that these corporations just use loopholes and don't pay near to what the actual amount. It talked about some other things, but it basically said if corporations still take advantage of many loopholes that exist, then the US still has the second highest corporate tax in the world, behind Japan.

 

Something needs to be done or corporations will continue to bolt to other countries. I think you're right when you say a lot of the problems in Republicans not wanting to agree with Democrats and vice versa.

As it is I don't blame corporations for looking out for the best rate. Any corporation, American or not should pay taxes on business conducted on American soil at least.

Where are all the "love it or leave it, good riddance" guys?

Where are all the "love it or leave it, good riddance" guys?

 

Still trying to finish high school.

I read an article the other week that talked about how the US has the highest corporate tax in the world. The article mentioned how a lot of people don't realize how high the corporate tax in the US really is. It mentioned many people who do see how high it is think that these corporations just use loopholes and don't pay near to what the actual amount. It talked about some other things, but it basically said if corporations still take advantage of many loopholes that exist, then the US still has the second highest corporate tax in the world, behind Japan.

 

Something needs to be done or corporations will continue to bolt to other countries. I think you're right when you say a lot of the problems in Republicans not wanting to agree with Democrats and vice versa.

 

Apply this to virtually any issue and therein lies your problem with most of them.

I don't see how liberals will support what they believe is help to those they have demonized for many years.

 

However, putting the tax rate on a level with competing countries is a start, which will in turn reduce the incentive for multi-nationals to manage income away from the US as they do today. This does not help distressed businesses that are losing money and/or need capital infusion to become more efficient. US manufacturing is extremely challenged to compete with countries which maintain a much lower labor cost and where much infrastructure is provided by the state (ie. China).

I don't see how liberals will support what they believe is help to those they have demonized for many years.

 

If the Democratic Party made a collective effort to talk about just how much the two things listed above would help small companies while making sure that massive multinationals paid their fare share, I don't think it's that tough of a sell.

 

But selling that concept to the party strategists in the first place will be VERY difficult. Reasoning with these hyper-politicized attack dogs that work for the party and for individual lawmakers is not the easiest task.

Nobody can agree on what a loophole is, let alone agree to close them.

Nobody can agree on what a loophole is, let alone agree to close them.

 

I envision that there are a swarm of lobbyists ready to bring to heel any lawmaker who seriously considers putting any muscle behind the "closing loopholes" rhetoric. And of course, members of Congress are all too eager to obey.

I envision that there are a swarm of lobbyists ready to bring to heel any lawmaker who seriously considers putting any muscle behind the "closing loopholes" rhetoric. And of course, members of Congress are all too eager to obey.

 

So, this is a pipedream in your opinion?

Still trying to finish high school.

 

Well at 3:30ish they should be here like they were in this thread then:

http://bluegrasspreps.com/kentucky-national-politics/another-billion-dollar-280540.html