This is the third in a series of posts about what the new Republican majorities in the House and Senate ought to do beginning in January of 2015.
Here's and important word: taxes. Of all the moves that the Republicans can make in January, changes to the tax code will be just about the most important for the economy. The GOP should start moving on proposals to change the corporate tax system in the USA. The current system which the Democrats just would not change is biased in favor of companies that send American jobs overseas. It is also biased in favor of a few friends of the administration who get special breaks while others without friends in high places pay the top corporate income tax rate in the world. Think of the difference between Obama's friends at GE who pay NO TAX on about five billion dollars in earnings and the 35% tax rate paid by small businesses across the country who do not have lobbyists in Washington. Both the low rate for GE and the high rate for small business is unacceptable.
The GOP should propose a plan that does away with tax loopholes and special breaks. The plan should lower the corporate tax rate to no more than 20%. It should also end the provisions that get corporations to keep their money overseas to avoid taxes. In face, the code needs to allow the two trillion dollars currently stuck overseas to be brought back to America without getting hit with huge taxes. We ought to want international companies to have their headquarters here in America rather than use the tax structure to drive American companies to move overseas.
A simplified tax code without all the special rules, loopholes and breaks for the well-connected would also cut the amount spent each year on accountants and lawyers. It is not that I don't like lawyers and accountants. Rather, it is important that we limit the amount that gets spent on people like that who produce nothing for the country.
There are other tax plans which could be used to great advantage. Switching to a value added tax instead of a corporate income tax would be a tremendous advantage for the American economy. There is no way that Obama would ever agree to that change, however, so the Republicans ought to focus on modifications to the tax code for corporations that will still greatly help the economy.
Without a doubt, president Obama and the Obamacrats will portray any proposal to change the corporate tax code as a "gift" to the rich. This time, however, the GOP should not let them get away with it. There should be a non-stop focus on the big companies that have gotten outrageous breaks during the Obama years. The GOP should push for fairness for all and end the benefits for the big contributors to the Democrats.
Here's and important word: taxes. Of all the moves that the Republicans can make in January, changes to the tax code will be just about the most important for the economy. The GOP should start moving on proposals to change the corporate tax system in the USA. The current system which the Democrats just would not change is biased in favor of companies that send American jobs overseas. It is also biased in favor of a few friends of the administration who get special breaks while others without friends in high places pay the top corporate income tax rate in the world. Think of the difference between Obama's friends at GE who pay NO TAX on about five billion dollars in earnings and the 35% tax rate paid by small businesses across the country who do not have lobbyists in Washington. Both the low rate for GE and the high rate for small business is unacceptable.
The GOP should propose a plan that does away with tax loopholes and special breaks. The plan should lower the corporate tax rate to no more than 20%. It should also end the provisions that get corporations to keep their money overseas to avoid taxes. In face, the code needs to allow the two trillion dollars currently stuck overseas to be brought back to America without getting hit with huge taxes. We ought to want international companies to have their headquarters here in America rather than use the tax structure to drive American companies to move overseas.
A simplified tax code without all the special rules, loopholes and breaks for the well-connected would also cut the amount spent each year on accountants and lawyers. It is not that I don't like lawyers and accountants. Rather, it is important that we limit the amount that gets spent on people like that who produce nothing for the country.
There are other tax plans which could be used to great advantage. Switching to a value added tax instead of a corporate income tax would be a tremendous advantage for the American economy. There is no way that Obama would ever agree to that change, however, so the Republicans ought to focus on modifications to the tax code for corporations that will still greatly help the economy.
Without a doubt, president Obama and the Obamacrats will portray any proposal to change the corporate tax code as a "gift" to the rich. This time, however, the GOP should not let them get away with it. There should be a non-stop focus on the big companies that have gotten outrageous breaks during the Obama years. The GOP should push for fairness for all and end the benefits for the big contributors to the Democrats.
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