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Republican are eager to work with President Obama and Democrats. Unfortunately, many Democrats and the Occupiers believe in increased taxes and more wealth redistribution, unable as they are to comprehend that higher taxes do not create jobs.
In a plan unveiled in February, President Obama seemed to come to the realization that it's time to chop the federal rate to 28 percent from 35 percent. But there was a catch.
Along with its proposed 28 percent rate, Obama's plan would impose such a high penalty on U.S. firms with overseas operations that business groups rightly say his plan would be worse than doing nothing with its $350 billion in new, off-setting taxes.
Republicans in the House are attempting to work with President Obama and Democrats. However, Democrats are advocating instead for increased taxes and more wealth redistribution. Their view of corporations is that they represents bottomless wells of potential tax money -- which doesn't work out that way in the real world -- and have summarily resisted calls to cut America's exorbitant tax rates.
On March 30, the House passed a Republican-backed budget introduced by House Budget Committee Chairman Paul Ryan, R-Wis., which called for lowering the top corporate tax rate from 35 percent to 25 percent. Ryan's plan would assist the corporate tax reform work being done in the House Ways and Means Committee.
In light of the Democratic-controlled Senate, Ryan's plan doesn't have a ghost of a chance of passing in the Senate. A similar Ryan budget plan was approved last year in the House, but it likewise failed in the Senate.
Researchers at the Heritage Foundation headquartered in Washington, D.C., have calculated that if federal corporate tax rates were cut to 25 percent, the benefits to the Americans would be dramatic: 1) The After-tax income for the typical family would rise by almost $2,500. 2) The U.S. economy would create 581,000 jobs a year over the next decade.
Once again President Obama has tried to fool the American people, as he did by pretending to support the Keystone XL pipeline, by indicating a willingness to cut the corporate tax rate to 28 percent, not withstanding that his tax "reform" proposal would actually hit businesses with $250 billion in new taxes.
America needs a simple, fair, broad-based tax system with lower rates and fewer loopholes. Such a tax system seems stymied for now.
Compiled by Tax Foundation President, Scott A. Hodge, are the Ten Benefits of Cutting the U.S. Corporate Tax Rate.
l. Cutting the corporate tax rate will promote higher long-term economic growth.
2. Cutting the corporate tax rate will improve U. S. competitiveness.
3. Cutting the corporate tax rate will lead to higher wages and living standards.
4. Cutting the corporate tax rate will boost entrepreneurship, investment, and productivity.
5. Cutting the corporate rate lowers the tax burden on low-income taxpayers and seniors.
6. Cutting the corporate rate will lower the overall dividend tax rate and taxes on capital.
7. Cutting the corporate tax rate can attract foreign direct investment (FDI).
8. Cutting the corporate rate would lead to lower corporate debt and reduce the incentives for income shifting.
9. Cutting the corporate tax rate can reduce compliance coasts.
10. Cutting the federal corporate rate can help the states compete globally.
Although this nation can be proud of being No. 1 in countless ways, isn't is about time to shed its "World Highest Taxes" title as soon as possible.
Voter education is necessary so they are given the facts instead of accepting the spin spewing forth from the White House and much of the mainstream media, which are presently in election mode to promote and re-elect President Obama.
If successful, voters will ultimately not be happy with their choice, nor will their children or grandchildren.
History will look back to this time and wonder how those principles and ideals of our Founding Fathers were so easily discarded for a promise of Utopia, which has never existed and which could never exist, as citizens of Greece and other European countries are now finding out the hard way.