May 8, 201309:08 AMVan Lines
with Joe Vanden Plas
Tax reform is key to economic confidence
(page 2 of 2)
One tax rate that needs particular attention is the corporate tax rate. Camp wants to reduce the corporate rate from 35% to 25%, which is a step in the right direction. I’m not convinced that’s enough of an incentive to convince large companies to “get off their cash” or bring it home from overseas accounts, but it would be a significant improvement, especially when our northern neighbor, Canada, has a top corporate rate of 15% (and, as my colleague Tom Breuer would add, universal health insurance coverage).
The goal of tax reform is not to starve the government of tax revenue; that would be as irresponsible as excessive spending. The goal should be to incentivize a higher level of business activity and employment – creating more taxpayers – which always results in higher tax collections.
Lord knows, there will be enough hurdles to overcome, but maybe the stars are aligned for next-generation tax reform.
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