When rethug claim we have the "highest corp, tax rate in the world." - it's a LIE. Because of all the corp. loopholes, which they never mention in their claims, we end up having some of the lowest rates of any industrialized nation. And even after all the loophole are closed, it will be nothing compared to the tax rates of the 1950s & 1960's when American Corp. paid something like 70% when all was said and done.
Seems to me, the country's overall economical health & wealth and thriving middle class were doing just fine under that system. What corp. America is crying about now is a joke.
WASHINGTON (AP) _ President Barack Obama plans changes to U.S. tax policy certain to be unpopular with corporations with international divisions and individuals who use overseas tax havens.
Obama's two-part plan, which he will announce later Monday at the White House, also embraces 800 additional federal agents to enforce the tax code.
The president's proposal would eliminate some tax deductions for companies that earn profits in countries with low tax rates, as well as consider U.S. citizens who use tax havens in the Bahamas or Cayman Islands guilty of violating U.S. tax laws. If Obama wins congressional approval for the changes _ and he faces a challenge from lawmakers _ the new enforcement initiative could yield $210 billion in tax revenue over the next decade.
Treasury Secretary Timothy Geithner was to join Obama for the comments. The White House released details of the plan earlier Monday.read more | digg story
UPDATE: If there is anymore reason for you to know just how right the President is in making these change, look no further than one of CNBC's most talented corporate stenographers, Erin Burnett:
SCARBOROUGH: There's a big difference between tax avoidance and being an all out tax cheat.
BURNETT: That's right. Isn't it your obligation in this country - there is a tax code for a reason, to take advantage of every bit of it you can and pay as little as you can.
There more:BURNETT: Everyone likes to say American companies tax dodge, and no doubt they do, and the tax system could use massive reform, I don't think anyone would debate that, but the average tax rate paid by American companies...as of last year, it was right up around 30-plus percent. They are supposed to pay 35%. The average in other countries is significantly lower. So that is something to think about when people talk about tax avoidance by major U.S. companies.
Republicans Defend Tax Havens Against Obama Crackdown
The White House will face opposition to the proposal from the business community and Congress. Before the announcement, a Republican leadership staffer circulated an email citing a Bloomberg report saying the proposal "would be the biggest tax increase on U.S. corporations since 1986."