Obama to Offer New Deal on Corporate Taxes, Jobs (lowering corporate tax rate)

[cali]

Hoping to break an impasse, President Barack Obama today will extend a new offer to congressional Republicans in which he would back an overhaul of the corporate tax system in exchange for a guarantee that a resulting one-time windfall be used to underwrite various job creation proposals.


<snip>

Last week, Mr. Obama began a series of speeches devoted to the theme that Washington needs to take more aggressive steps to shore up the middle class and to boost long-term economic growth. He is also rethinking his strategy for motivating Congress to act. In today's speech, his aim is to entice Republican lawmakers to agree to jobs proposals he has long advocated in exchange for business tax reductions that are important to the GOP's political base.

<snip>

In the past, Mr. Obama has said he would agree to reduce corporate tax rates only as part of a larger plan that would revamp the tax code for individuals, end tax advantages benefiting wealthier Americans and apply the proceeds to deficit reduction.

With no breakthrough in sight, Mr. Obama is dropping his insistence that individual tax rates be part of the package, so long as Republicans agree to plow one-time proceeds from the corporate tax overhaul into measures that Mr. Obama says would lift wages and create jobs, White House officials said.

<snip>

http://online.wsj.com/article/SB10001424127887323854904578636903853862978.html

[theaocp]

1. and he trusts the Republicans to keep their

word WHY? This is bait and switch bullshit times Pantera.

[Ichingcarpenter]

2. Robbing Peter to pay Paul

A government that robs Peter to pay Paul can always depend on the support of Paul.

George Bernard Shaw


Read more at http://www.brainyquote.com/quotes/quotes/g/georgebern128084.html#M1wIh4GSG05Zx68k.99


I find his idea stinks when the big corporations already pay no significant taxes in relationship to their wealt.

[TBF]

3. Lowering corporate tax rates again?

FFS. Trickle down does not fucking work. How many times does this have to be explained to people, including people who happen to be president?

Here is a free article for folks who don't subscribe to the WSJ - http://timesfreepress.com/news/2013/jul/30/obama-proposes-grand-bargain-jobs/

[Teamster Jeff]

4. He is negotiating with himself nt

[badtoworse]

5. Finally, Obama is seeing the light on corporate tax rates

They're too damn high and that is one of the reasons we've been losing jobs to countries with lower rates. Haven't seen any details, but in principle, I like it.

[Scuba]

6. Please provide evidence to back your claims. There's a lot published that says you're wrong.

[badtoworse]

7. See link below.

http://www.huffingtonpost.com/2012/03/30/us-corporate-tax-rate_n_1392310.html

[Scuba]

12. See Buns of Fire's post below.

[badtoworse]

15. See my response

[ms liberty]

8. Nonsense. Corp tax rates the lowest in decades. n/t

[Duckhunter935]

9. I agree

we should ensure that they all get refunds and never pay taxes. Race to the bottom we can surly win. By the way what is the effective tax rate now?

[Buns_of_Fire]

10. There's a difference, though, between the statutory rate and the effective rate:

The Average Big American Company Hasn't Paid The Statutory Tax Rate In At Least 45 Years

Read more: http://www.businessinsider.com/us-statutory-and-effective-tax-rates-2013-7#ixzz2aWu5CgW3

They could set the statutory rate at 98% -- but if they also set up enough offsets and allowable deductions...

[badtoworse]

14. So other countries don't have tax deductions as well?

Even allowing for that, we're still high. Here are some global averages according to KPMG

United States - 40%
Global Average - 24.05%
Europe - 20.6%
Asia - 22.36%
North America - 33%
Latin America - 27.61%
Africa - 28.63%

http://www.kpmg.com/Global/en/services/Tax/tax-tools-and-resources/Pages/corporate-tax-rates-table.aspx

Factor in lower labor costs and a more friendly regulatory environment elsewhere and it's no wonder the jobs have left.

[John2]

22. I don't know why you are trying to

sell that here, and claiming jobs are flying to those countries? You got to be joking? Why don't you give us the unemployment rates on those continents also, along with poverty rates of the citizens?

Jobs has not left this country. Obama needs to get off this fasaud. What we really are talking about is more profits, to enrich a few people. You are not going to make the American people peasants or slave laborers. They have already stole our Government. Only the American people are intelligent enough to stop this crap by putting these people in jail, which Obama has failed to do. Fire them them all and put people in to go after these people. Yeah we can create a lot of jobs very quick, right in the public sector. How will you like that?

You know what the corporations and wealthy are giving people a job at. They are hiring them to do their killings, that's what.

[W_HAMILTON]

24. I remember McCain and other Republicans touting Ireland's low corporate tax rate.

Ireland's unemployment rate (as of April 2013) was 13.5% and hasn't been below 10% since January 2009.

Corporations don't want lower income taxes so that they can hire people, they want lower income taxes so they can claim even greater of a profit than they already are.

[John2]

31. The people paying

for these Wrs are the corporations. They can always find dollars to hire people to control more of the World's resources. They want to make the American people powerless and peasnts just like the rest of these countries. THere are plenty of things needed to be done in this country. They want our skills for cheap too because most of the people hoarding wealth, probably haven't done a hard days work in their lives. At least not like the people who do the dirty jobs.

[badtoworse]

27. What an erudite response.

[John2]

36. No, it is

a very intelligent response. I can see right through the deception. To make the claims corporations are being oppressed in this country is ridiculous. There are Wars and discontent all over this World because people are discontented with their lives. The problem are people hoarding individual wealth and the resources. That is what causes revolutions, if you know the definition of the word. Why should the American people accept Blackmail, when the resources of this country belongs to them? The American people can just take what they want really and put better people in charge. Then who will be out of a job and on the streets? They are only stewards of the economy. Those people don't make a single car, or teach a single pupil. The American people can just fire the people running every corporation in this country and freeze their assets. We can even strip the clothes off their backs and send them on their way to what ever destination they desire, if they can pay for it.

[badtoworse]

38. Are you serious?

"The American people can just fire the people running every corporation in this country and freeze their assets. We can even strip the cvlothes off their backs and send them on their way to what ever destination they desire, if they can pay for it."

Ever hear of the 5th Amendment

[Jeff In Milwaukee]

26. Teh Stupid, It Burns....

The table you're looking at shows statutory tax rates, and the whole point of the subthread is that while U.S. statutory rates are higher than the rest of the world, effective tax rates (that is to say, actual tax collections from business) bear little resemblance to the statutory rate.

A March 31, 2011, Congressional Research Service (CRS) report titled "International Corporate Tax Rate Comparisons and Policy Implications," compared the weighted average of corporate tax rates in the United States and in other countries in the Organization for Economic Co-operation and Development (OECD). It found that the United States has an effective corporate tax rate of 27.1%, compared to the OECD (excluding the United States) average of 27.7%.

Read. Learn.

[angstlessk]

45. By continent 2011..lower labor costs..2$ per day .and NO regulations at ALL

Africa average 28.63
North America average 33
Asia average 22.36
Europe average 20.6
Latin America average 27.61
Oceania average 27
EU average 22.76
OECD average 25.32
Global average 24.05

[WinkyDink]

19. No. Companies want to pay slave wages, and can do so in Thailand, Ecuador, Nicaragua, Mexico, ......

[badtoworse]

21. You're right. What other explanation could there be?

[WinkyDink]

44. None that you'll posit.

[Capt. Obvious]

23. Corporate tax rates are too damn high!

[LondonReign2]

29. Corporate taxes have fallen from 26% of Federal revenues to 10%

http://www.democraticunderground.com/10022887482

So we need to lower them further??

[Broward]

11. Cut corporate tax rates? Another Republican proposal from a self-described

moderate Republican from the 1980's. I would only quibble with the term moderate.

http://abcnews.go.com/ABC_Univision/Politics/obama-considered-moderate-republican-1980s/story?id=17973080

"The truth of the matter is that my policies are so mainstream that if I had set the same policies that I had back in the 1980s, I would be considered a moderate Republican."

[John2]

25. Exactly, and

that dog want hunt no more, just like with that CPI crap! It is the same with Foreign policy and regime change. It is all for coporate interests. He needs to stop this charade now! The American people will no longer be Blackmailed by these goons! We can change it real quick ourselves by cleaning out this Government in both Parties! It is why this country need to consider electing Liberals. Politicians in that wing of the Party need to elect some candidates and get the guts to run against these people. We are fed up with the establishment of both Parties, because they are one in the same with this scheme of bait and switch.

[bemildred]

13. Not until we get a decent Congress. The current Congress could not wipe it's butt correctly. nt

[ChairmanAgnostic]

16. But they are so good at licking them,

especially those connected to a very good lobbyist.

[Pholus]

17. How about reducing CIA travel money to 3 stars instead of 5 stars?

Black budgets breed corruption, waste and abuse.

http://www.democraticunderground.com/10023371186

[WinkyDink]

18. "Job creation PROPOSALS"? Oh, now THERE'S something with real teeth! Bwahahahaha!

[bullwinkle428]

20. Sounds like classic "Popeye/Wimpy" strategy to me - the Pukes

are telling Obama "I'll gladly pay you next Tuesday for a hamburger today!"

[PowerToThePeople]

28. Newsflash: Obama (R) is going to screw over the people who voted for him again.

n/t

[mick063]

30. Keep in mind

That we had a temporary tax break under Bush and after a decade, we had a debt ceiling fight, sequestration, had to barter away important tasks to get some of it to properly expire, and permanently retain a good portion of the tax break.

The 1% does not comprehend "one time deals".

[ProSense]

32. It's not as radical

Obama wants to cut the corporate tax rate of 35 percent down to 28 percent and give manufacturers a preferred rate of 25 percent. He also wants a minimum tax on foreign earnings as a tool against corporate tax evasion and increased use of tax havens.

The new twist is that in exchange for his support for a corporate tax reduction, he wants money generated by the tax overhaul to be used on a mix of proposals such as funding infrastructure projects like repairing roads and bridges, improving education at community colleges, and promoting manufacturing, senior administration officials said.

<...>

http://www.reuters.com/article/2013/07/30/us-usa-obama-idUSBRE96T0F820130730#undefined

...as other proposals. I'd like to see the details. The problem is that most large corporations pay little to no taxes because of the gigantic loopholes. The rate can't be lowered if the loopholes aren't eliminated.

Wyden has been pushing a plan to lower it to 24 percent.

Ron Wyden is wonkish, optimistic, idiosyncratic — and about to be very powerful

By Ezra Klein

Sen. Max Baucus’s (D-Mont.) announcement that he’ll retire in 2014 clears the way for Sen. Ron Wyden (D-Ore.) to become chairman of the powerful Senate Finance Committee. If Baucus annoyed Democrats for being too cautious, Wyden will annoy them by being too ambitious — and too ceaselessly interested in brokering big, bipartisan deals.

<...>

But Wyden, a Democrat from Oregon, has a plan. Originally, it was co-sponsored by Judd Gregg, a Republican senator from New Hampshire. But he retired in 2010. Now it’s co-sponsored by Dan Coats, a Republican senator from Indiana. The plan wipes out a raft of deductions and exemptions; lowers rates for individuals and corporations; eliminates the alternative minimum tax; makes filing easier and, for many Americans, automatic; and is roughly revenue neutral with the expiration of the Bush tax cuts for households with income more than $250,000. It’s not as radical as some other ideas out there, but then, neither is the political system. I would bet that Wyden’s plan ends up pretty close to what we eventually get.

- more -

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/04/23/ron-wyden-is-wonkish-optimistic-idiosyncratic-and-about-to-be-very-powerful/

Wyden-Coats would grant large corporations a onetime repatriation tax holiday, letting them bring that money into the United States at a rock-bottom tax rate. By eliminating deferral, Wyden said, his bill would sharply reduce the corporate tax rate to 24 percent from 35 percent.

http://www.reuters.com/article/2011/09/21/us-usa-tax-wyden-idUSTRE78K1YB20110921

Tax code can be made less taxing

By SEN. RON WYDEN

President Barack Obama has challenged Congress to do something it hasn’t done in 25 years: reform the federal tax code.

It’s no small thing.

The tax code is filled with hundreds of tax breaks and loopholes, each fought for and backed by special-interest groups determined to keep them. Given the recent, highly partisan tax debates, it is hard to imagine Democrats and Republicans coming together to write one bill. But I share the president’s optimism that it can be done.

First, it has been done before. In 1986, a Democratic House majority joined forces with President Ronald Reagan and a Republican-led Senate to overhaul the federal tax code. There was no precedent for that coalition, but there is one today.

Joining forces against special interests, Democrats and Republicans sent the president sweeping bipartisan legislation that eliminated numerous tax breaks and loopholes to streamline the code and hold down rates for everyone, without any additional government spending.

more

http://www.politico.com/news/stories/0211/48943.html

[JoePhilly]

35. Wonder if Wyden will get thrown under the bus for those.

[DesMoinesDem]

40. "I'd like to see the details." Translation: I haven't got my talking points yet.

[beerandjesus]

33. Am I the only one here who thinks the phrase "New Deal", as used in that headline....

...sounds awfully Orwellian?

[gtar100]

34. Because it's worked so well before.

[FreakinDJ]

37. Sold Out yet again

Corporate Taxes are driving us into a Bananna Republic already

[Egalitarian Thug]

39. More permanent corporate rule in exchange for another temporary gesture.

Just fucking brilliant.

& R

[Safetykitten]

41. Yes indeedy!

[BrotherIvan]

42. Yessir

And that gesture will magically not have to votes to pass. I wonder if Obama already knows that and this is in fact 11th dimensional chess: give some shit away to the 1% and promise the rest of us we'll get ours later, fawning and cheering ensues. Then poof, oops the big bad Rs voted against it. Who could have known?????? Shut up haters!

Can you say TROJAN HORSE?

[raouldukelives]

43. Investors get what they pay for. nt