I heard some liberals interviewed on the news (probably NPR since I don’t listen to or watch Fox News) who tried to excuse the fact that the U.S. has one of the highest corporate income tax rates (35%) in the world by saying that the taxes are “rarely paid” due to lots of loopholes, credits, and deductions. According to the IRS, the federal government collected $221 billion in corporate income taxes in 2011 (the latest figures I saw). Where did the $221 billion come from if the taxes are rarely paid? Republicans are upset about the loopholes, credits, and deductions as well. There is talk of eliminating some of them in exchange for lower rates in some sort of tax reform deal with Obama. The Republicans can’t be trusted when it comes to tax reform.They have philosophical objection to taxes. when it comes to tax reform, always remember the Rockwell rule: Does it reduce or eliminate an existing tax?
See all of my many articles on taxation here.
6:46 pm on November 7, 2014
