President Obama may have another massive tax cut in the works - this one for America's giant corporations. The White House may be considering cutting the 35% corporate tax rate next year. The rate is the highest in the world - but with so many loopholes in the law - most companies don't pay nearly 35%. Also - as most businesses divert their profits into the hands of individuals who play some of the lowest income taxes in the world - many corporate profits go completely untaxed. Last year - Exxon Mobile - the most profitable corporation in the history of the world - and General Electric paid no corporate taxes. In fact - 85% of all corporate tax revenue comes from only one half of one percent of companies - about 10,000 businesses in all. This may actually be a good idea though - if President Obama does indeed close some of the loopholes that plague our corporate tax structure. The best way to do that - stop giving tax breaks to companies that ship American jobs overseas. Not only will the federal government raise more revenue to offset the lowering of the corporate tax rate - it will encourage business to stay in the United States. It's time for meaningful tax reform - not giveaways to companies who can hire the most lobbyists.
-Thom
(What do you think the president should do? Tell us here.)
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