Debate Club

Lowering the Corporate Tax Rate a Good Start

By SHARE

When Japan lowers its corporate tax rate on April 1, the United States will have the highest corporate tax rate among industrialized nations. That's why it was very good news when, earlier this week, the Obama administration proposed plans to lower the corporate income tax rate to 28 percent and take steps to broaden the base.

In these polarized times, we now have a rare point of agreement. This administration, Republican and Democratic members of Congress, and the nation's leading employers have come together over the proposition that a meaningful reduction in the rate, combined with a broadening of the base, is necessary to allow U.S. businesses to compete in today's global marketplace. This continued momentum and bipartisan support in all branches of government presents a unique opportunity to accomplish such a significant milestone in an election year.

[GOP Candidates Could All Add to Federal Debt.]

The RATE Coalition, a group of 26 companies and organizations employing approximately 30 million people across all 50 states, supports corporate tax reform. We welcome the Obama administration's recognition of the negative impact the current 35 percent corporate tax rate has on our economy. While a rate reduction of 28 percent is a step in the right direction, the goal of all parties should be to lower the rate to 25 percent, the average of Organisation for Economic Co-operation and Development, or OECD, countries. There are many advanced economies with even lower rates—Switzerland has an 8.5 percent rate and Ireland has a 12.5 percent rate. A corporate tax rate that is above the OECD average will only keep U.S. corporations at a competitive disadvantage. We understand that the country needs deficit reduction and hope that as the analysis of possible offsets is completed we can get to the lower rate.

Elaine Kamarck

About Elaine Kamarck Co-chair of the RATE Coalition

Tags
Obama, Barack
corporate taxes
Obama administration

Other Arguments

#1
76 Pts
Obama Proposal a Little Good, Some Bad, a Whole Lot of Ugly

No – Obama Proposal a Little Good, Some Bad, a Whole Lot of Ugly

Nick Tuszynski Fellow at George Mason University's Mercatus Center

#2
14 Pts
U.S. Corporate Tax Code Is Terribly Inefficient

Yes – U.S. Corporate Tax Code Is Terribly Inefficient

Chuck Marr Director of Federal Tax Policy at the Center on Budget and Policy Priorities

#3
-3 Pts
U.S. Corporations Are Not Overtaxed

No – U.S. Corporations Are Not Overtaxed

Steve Wamhoff Legislative Director of Citizens for Tax Justice

#5
-14 Pts
The President Strikes a Blow for Tax Fairness

Yes – The President Strikes a Blow for Tax Fairness

Eileen Appelbaum Senior Economist at the Center for Economic and Policy Research

#6
-16 Pts
Better Tax Reform Would Tax All Business at One Low, Flat Rate

No – Better Tax Reform Would Tax All Business at One Low, Flat Rate

Ryan Ellis Tax Policy Director at Americans for Tax Reform

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