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White House corporate tax plan a good step, if an early step

February 24, 2012 - Mike Maneval
The corporate tax plan revealed by the Obama administration Wednesday, along with tax relief including the $180 billion to $270 billion included in the stimulus package passed in 2009, may be a good step - but more as an initial step that hopefully will be followed by a more comprehensive initiative with the potential for greater impact.

The strength in the changes announced Wednesday, as detailed by Mary Bruce of abcnews.go.com, is that they would prioritize job creation in the U.S. with a 25-percent tax rate on domestic manufacturing, while otherwise granting corporations a 28-percent rate - still lower than the 35-percent rate they pay today. At this 28-percent rate, the new code would treat businesses more equally by eliminating loopholes, such as exemptions and write-offs for favored industries and sectors, including write-offs targeted toward oil and gas companies.

President Barack Obama still could go further, providing greater relief to working Americans and amplifying consumer spending, with plans to shift more of the burden from the earned income tax and payroll taxes to unearned income. While such efforts still are frustratingly slow, the potential is in his record, with partial reinstatement of the estate tax and continued attempts to retain the payroll tax cut secured for another year through negotiations with congressional leadership.

Hopefully, as the election approaches and the need for the president to demonstrate bold leadership grows, such an initiative will be revealed.

 
 

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