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UnNightly News: Another Gift for Corporate America – Tax Reduction

January 5, 2011

One day into the new congressional session and guess what – another gift for corporate America is being suggested. I can hardly stomach it. This is largely the same Obamacans who worked with the President to get the Bush tax extension for the wealthy.

You know, my tiny small business is incorporated for liability reasons, but the kind of corporate tax overhaul being tossed around would largely benefit the mega-corporations, the multi-nationals, and the uber-wealthy, the same people who just got a personal tax cut of $2 trillion dollars (approx. $900 billion per year over the next two years). These folks are calling the shots and Obama and the Obamacan-Republicans are yes-maaming them all the way.

Tax reform for corporations will result in them paying less in the future. The tax burden will then fall upon the everyday American to pay for running the government, Medicare, Defense, Education, and all the other programs and departments. I guess this is the big change we heard about earlier today from Housespeaker Boehner. I love how they couch their argument and talk about overhauling individual taxes. What they are not saying is the idea of a National Sales Tax is also being discussed. That kind of tax would affect the poor the most, and the rich, the least.

Remember my December 5th post on coming tax reform? Here is a tidbit from that post on the Simpson-Bowles Deficit reduction plan. You see, THIS is how the deficit will be reduced….on the backs of everyday Americans with another tax, the National Sales Tax. (see my next post).

While it will create new tiers for individuals, it also includes a proposed 6.5% NATIONAL SALES TAX. Yes, a tax on everything you buy. This means you will be potentially paying three or four type of taxes from the same dollar if you do not include Social Security:

1. State Income Tax
2. Federal Income Tax
4. Local and/or State Sales Tax
5. National Sales Tax

A revamp of corporate taxes could also be hitched to an overhaul of individual taxes. That could increase the risk that lawmakers would try to raise overall taxes on businesses, as a way to offset the cost of keeping rates low for individuals. That’s what happened in the last big tax overhaul, in 1986.

Lawmakers say any effort to overhaul corporate taxes could run into the 2012 election season. Rep. Richard Neal (D., Mass.) said the conversation needed to start this year. “Then the presidential candidates need to take it up in earnest the following year,” he said.

House Ways and Means Committee Chairman Dave Camp (R., Mich.) is expected to hold early hearings on a tax overhaul. The Senate Finance Committee, led by Sen. Max Baucus (D., Mont.), has also started holding hearings on a broad-based tax overhaul.

“We are hearing from—the administration is hearing from—members are hearing from CEOs around the country, saying this is a huge issue,” said Mr. Tiberi.

As a short-term alternative to an overhaul, some lawmakers and business advocates are pushing a temporary change in tax rules to encourage U.S. multinational corporations to bring home more of their overseas profits that currently are parked offshore.

WSJ Reports today:

Leading Republican lawmakers this week said they would push hard for an overhaul in the months ahead to help boost the economy and job creation. Supporters say lowering corporate rates is particularly important to stimulating more investment within the U.S. and expanding exports.

“Tax reform could be a significant boost to our competitiveness,” Rep. Eric Cantor (R., Va.), the new House Majority Leader, said this week. “I’m hopeful and expect the president to put some action behind his statements.”

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