President Obama has now come out in the open with his plans to lower the US’s corporate tax. Currently, US corporate tax rates are the highest in the world as every company has to give out 39.5% of its income. Whilst the majority of US businesses work hard to meet the nation’s tax obligations, some of them have been managing to manipulate the system considerably to their advantage and the new measure aims, among other things, to reduce/ eliminate this inequality.
According to Mr. Obama, “over the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world.”
The president’s initiative has so far been met with a warm response by US business groups, but the country’s liberals are furious saying that it ignores the country’s deficit problem and leaves the rich and the near-rich with most of their cash which is contrary to Mr. Obama’s election promises.
[Financial News Contributor]
- What About Corporate Tax Reform? (andrewsullivan.theatlantic.com)
- Income and Corporate Taxes By State (turbotax.intuit.com)
- United States: Highest Corporate Tax Rate in Oecd? (socyberty.com)
- Obama: Lower corporate tax rates, close loopholes (sfgate.com)