Mama Bin Cranky

Screaming on the Inside

Lowering Corporate Tax

Posted by madjillmom on February 22, 2012

In a bid to beat Romney to the punch, PresBO has come out with a proposal to cut the corporate tax to 28%.  Romney will come out with a 25% rate. Cutting the corporate rate is going in the right direction. Is Obama doing it because it is “fair”?  Or is he doing it to goose the anemic recovery teetering on the edge of a double dip?  If he is doing it to increase revenue, then he cannot support a Buffett tax.

The proposal would reduce loopholes and deductions.  In particular, evil oil companies would lose some depreciation, some up front expense, and depletion deductions.  If these “subsidies” were removed, will the price of gasoline go down?  I don’t think so.

The President’s proposal would also increase loopholes for the industries Obama wants to promote.  Stuff like Solyndra and unionized manufacturing.  Evidently, Obama and the Dems want us to go back to the good old days when union manufacturing was really our lifeblood.  You know, when African-Americans had little rights and contraceptives were not readily available.

Also, he wants to tax profits made outside of the US.  Won’t the unintended consequence be that corporations will headquarter in other countries? Wonder if this will affect GE?  Will they end up paying some corporate tax?

Also, he is going to change the depreciation on corporate jets, thus killing that industry.

Obama is all about winners and losers.  The American people lose.

 

 

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