Obama moves on corporate-tax reform

posted at 11:00 am on February 22, 2012 by Ed Morrissey

Corporate tax reform has long been an opportunity for a win-win bipartisan effort in Washington. Everyone agrees that the corporate code needs significant changes, if not a complete overhaul; it’s too complicated, too costly, and rewards the larger companies that can afford to analyze it for every possible benefit.  Both parties have made corporate tax reform part of their plartforms, Democrats arguing that we need to close loopholes, Republicans that we need simplification and lower rates.

The White House decided to go first on corporate tax reform:

The Obama administration Wednesday will unveil a framework for reforming the corporate tax code that would lower the top rate from 35 percent to 28 percent but generate more total revenue by eliminating “dozens of tax loopholes and subsidies” and creating a minimum rate on foreign earnings.

Treasury Secretary Timothy Geithner will formally unveil the tax reform blueprint at 11:30 a.m.

The “global minimum tax” makes an appearance, along with a laughable pledge to pay for the rate reduction by — wait for it — “greater fiscal responsibility”:

The tax reform framework “eliminates dozens of different tax expenditures and fundamentally reforms the business tax base to reduce distortions that hurt productivity and growth. … It reinvests these savings to lower the corporate tax rate to 28 percent, putting the United States in line with major competitor countries and encouraging greater investment,” according to an administration official.

The official added that the framework “would refocus the manufacturing deduction and use the savings to reduce the effective rate on manufacturing to no more than 25 percent, while encouraging greater research and development and the production of clean energy.”

The framework would establish “a new minimum tax on foreign earnings, to encourage domestic investment.” The proposal will be “fully paid for … to greater fiscal responsibility than our current business tax system by either eliminating or making permanent and fully paying for temporary tax provisions now in the tax code.”

“Greater fiscal responsibility”? Isn’t this the same White House that produced four trillion-dollar-plus budget deficits?  Yeah, that will work out well.

James Pethokoukis takes a long look at the proposal, and declares that Treasury Secretary Tim Geithner should resign for putting his name to it:

The current U.S. economic recovery is arguably the worst in modern American history. Incomes are flat, housing is moribund and the past three years have seen the longest stretch of high unemployment in this country since the Great Depression. Yet President Barack Obama—with the backing of Treasury Secretary Timothy Geithner—has the temerity to propose a corporate tax reform plan that would actually raise the tax burden on American business (and de facto on workers, too) without lowering rates to an internationally competitive level. This is a terrible, terrible plan:

1. The Obama-Geithner plan would lower the statutory corporate tax rate to 28 percent from 35 percent, currently the second-highest among advanced economies. But that would still leave the combined U.S. corporate tax rate — state and federal — at 32.2 percent, far above the OECD combined average of 25 percent.  The U.S. combined rate would be a bit below slow-growing Japan and France but above the U.K. and Germany. That’s not nearly good enough. Canada just lowered its corporate tax rate, for instance, to 15 percent. So instead of having the second highest corporate tax rate in the world, the U.S. would probably be fourth behind Japan, France and Belgium.

2. The Obama-Geithner plan would establish, according to the New York Times, a minimum tax on multinational corporations’ foreign earnings to discourage “accounting games to shift profits abroad” or actual relocation of production overseas.

So instead of a carrot, Corporate America gets the stick. Instead of lowering the U.S. rate to a competitive level, Obama would raise the penalty on keeping profits overseas. Indeed, the United States is a huge outlier in that it taxes the foreign profits of multinational companies. Here is Obama’s own Jobs Council:

While most other developed nations have adopted territorial systems that exempt most or all foreign income from taxes when they are repatriated, the U.S. subjects all worldwide earnings to the corporate income tax when they are brought home to the U.S. This approach actually encourages U.S. companies to keep their earnings abroad rather than investing them here at home. Adopting a territorial tax system would bring us in line with our trading partners and would eliminate the so-called “lock-out” effect in the current worldwide system of taxation that discourages repatriation and investment of the foreign earnings of American companies in the U.S.

Obama’s debt commission made a similar recommendation.

James has plenty more to say, especially on the lack of understanding on the part of Obama and his team about basic economics.  Who pays corporate taxes? Consumers and employees do.

However, from a political perspective, this may be even worse than its economics.  For the second straight year, Obama has launched a major proposal while deliberately disregarding his own advisory panel’s recommendations.  That turned into political disaster last year, when Obama’s budget ignored his own appointed deficit panel.  His budget got voted down unanimously in a Senate controlled by his own party, making him look extreme and out of touch on budgetary issues.

Now his new corporate tax proposal ignores the recommendations from the panel Obama created to much fanfare last year as part of his focus on job creation and economic growth.  The obvious conclusion is that Obama has prioritized punitive tax changes on American business in order to fund his spending expansion over economic growth.  Republicans need to emphasize that Obama’s job council turned out to be nothing more than a smoke screen, just the same as Simpson-Bowles, and that this corporate tax “reform” is anything but.


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I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Terrible, terrible plan from a terrible, terrible president.

DrStock on February 22, 2012 at 11:03 AM

Good Morning America, and sockpuppets.

Schadenfreude on February 22, 2012 at 11:06 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

How ignorant of economics can liberals possibly be? This ignorant.

DrStock on February 22, 2012 at 11:06 AM

Grasping for straws by a band of idiots or purposeful evil?

SouthernGent on February 22, 2012 at 11:07 AM

The White House decided to go first on corporate tax reform:

This is a pretty blatant attempt to get to Mitt Romney’s right.

Doomberg on February 22, 2012 at 11:07 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

And who will you blame when they close their doors and put you, your family members and your friends out of work?

NotCoach on February 22, 2012 at 11:08 AM

James Pethokoukis takes a long look at the proposal, and declares that Treasury Secretary Tim Geithner should resign for putting his name to it:

James, we feel the same as you do.

upinak on February 22, 2012 at 11:08 AM

If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Well, as least you’re an honest leftist, telling us your desired end game. Maybe your type can just man up, and run on that declaration.

MNHawk on February 22, 2012 at 11:08 AM

“global minimum tax”

20 years ago the “global” meme was considered loony bin worthy.

What pisses me off is the stealth and steady drum beat method they have brought us from a sovereign state to a global nightmare that will not end well.

katy on February 22, 2012 at 11:08 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

O’er the laaaaaaand of the freeeeeeeeeeeee…

CycloneCDB on February 22, 2012 at 11:08 AM

It’s inevitable when Amateurs are elected.

kirkill on February 22, 2012 at 11:08 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Then where the hell are you going to get a job sport. Oh I bet you just want to live off handouts like the rest of the liberal scum.

banzaibob on February 22, 2012 at 11:08 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

I believe we should tax the stupid people of the world, for just being here. But that would be wrong, and you would owe in the billions.

upinak on February 22, 2012 at 11:09 AM

No, problem. If congress doesn’t like this plan Obama and Timmy will just do it without them!

ctmom on February 22, 2012 at 11:09 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

You really really…really work hard at being stupid, don’t you?
If there was a market for that…you’d be rich!

KOOLAID2 on February 22, 2012 at 11:09 AM

How ignorant of economics can liberals possibly be? This ignorant.

DrStock on February 22, 2012 at 11:06 AM

Ever wonder why Chicago Public Schools are as bad as they are?

MNHawk on February 22, 2012 at 11:10 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Wow, that liberal arts degree was awesome, eh? Do you really not understand that if you “punish” greedy corporations, they will leave? Have you not noticed that employers have left Cali and are relocating to TX? Do you not know that “corporation” don’t pay taxes – customers and shareholders do.

This is a big problem with the left – the arguments have all of the sophistication of a bumper sticker.

johnboy on February 22, 2012 at 11:10 AM

2. The Obama-Geithner plan would establish, according to the New York Times, a minimum tax on multinational corporations’ foreign earnings to discourage “accounting games to shift profits abroad” or actual relocation of production overseas.

Man – that’s not creepy or anything. This administration is just flat out scary. Hugo Chavez must laugh when he hears people say America is free.

CycloneCDB on February 22, 2012 at 11:10 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

And they can take their stupid jobs with them. Who needs jobs?

talkingpoints on February 22, 2012 at 11:11 AM

This liberal4life guy is just being sarcastic, right?

kit dinker on February 22, 2012 at 11:12 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Do you seriously not understand that corporations do not pay taxes? Every tax, fee, and cost imposed on a corporation by the government is simply passed on to the consumer, either directly as with a sales tax or indirectly by raising the cost of the good. No company is simply going to have their taxes raised and decide to absorb that cost.

That is why the corporate tax rate should be zero. Because corporate income taxes are a fiction.

Shump on February 22, 2012 at 11:12 AM

liberal4life on February 22, 2012 at 11:03 AM

You really believe that?! I guess liberals would.

22044 on February 22, 2012 at 11:12 AM

This is a big problem with the left – the arguments have all of the sophistication of a bumper sticker.

johnboy on February 22, 2012 at 11:10 AM

Only difference is…bumpers serve a purpose. Liberals…ehhhhh….not so much…

CycloneCDB on February 22, 2012 at 11:12 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

And when they do pack their bags and get the hell out, taking their billions with them, then what happens to our economy?

Doughboy on February 22, 2012 at 11:12 AM

Good grief! Obama is evil.

tinkerthinker on February 22, 2012 at 11:12 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

You do know the computer you’re writing your ignorant ideas on, as well as every freaking thing in your home was produced by a corporation?

You don’t have a clue how life works, except that you’re hell bent on blowing it all up.

If idiots like are the majority…we’re doomed.

katy on February 22, 2012 at 11:13 AM

Man – that’s not creepy or anything. This administration is just flat out scary. Hugo Chavez must laugh when he hears people say America is free.

CycloneCDB on February 22, 2012 at 11:10 AM

punish the people who want the goods, which was set up for free trade and no tariffs for the people.. is now dead. I hope you know how to sew or make linens for clothing. We are going back to the stone age faster than I thought.

upinak on February 22, 2012 at 11:13 AM

Whenever I hear a Democrat say the word reform, I grab my wallet a little tighter.

angryed on February 22, 2012 at 11:13 AM

Barack (Bullwinkle) Obama: “Hey Rocky, watch me redistribute this rabbit out of my hat.”

Rovin on February 22, 2012 at 11:13 AM

But listen to the spin by the liberal media this morning:

“President Obama proposed to cut the corporate tax rate from 35% to 28%, by closing tax loopholes, but Congress is not expected to approve this plan.”

While Republican Presidential candidates have proposed cutting the corporate tax rate and been demonized for “favoring the rich”, suddenly the most socialist President this country has ever known is portrayed as pro-business while Congress is accused of dragging its feet.

Will somebody Puh-LEEEZE explain this to the sheeple out there?

Steve Z on February 22, 2012 at 11:14 AM

Good lord people, are you really going to feed the troll this much?

angryed on February 22, 2012 at 11:14 AM

Barack (Bullwinkle) Obama: “Hey Rocky, watch me redistribute this rabbit out of my hat.”

Rovin on February 22, 2012 at 11:13 AM

blenders make bad hats.

upinak on February 22, 2012 at 11:15 AM

The current U.S. economic recovery is arguably the worst in modern American history

It’s the worst recovery since the Great Depression.

Wigglesworth on February 22, 2012 at 11:15 AM

How ignorant of economics can liberals possibly be? This ignorant.

DrStock on February 22, 2012 at 11:06 AM

Correction: stupid. Ignorance, by definition, can be repaired.
This dull normal has not the slightest clue of the difference between profit and profit margin.

Lanceman on February 22, 2012 at 11:15 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

How dare those damn companies from wanting to make profit! Evil! How dare some private individual wanting to strike out on his own, risking his own treasure, in the attempt to strike it rich. Evil!

search4truth on February 22, 2012 at 11:15 AM

Obama knows nothing about economics… or about anything else as far as i can tell. Somehow, a long time ago we forgot our money was our money and not the money the gov’t decides to let us keep.

aniptofar on February 22, 2012 at 11:16 AM

“I’m from the government…and I’m here to help!”

search4truth on February 22, 2012 at 11:17 AM

Wow. This man is so clueless that it is unbelievable.

Between this story and the Story in the Wall Street Journal this morning about the tax increases that are coming for the “rich” it makes you question whether Obama knows anything about economics.

The danger of another 4 years of Obama is almost as dire as preventing Iran from getting a nuclear weapon. I think its fair to say that America, financially, might not be able to recover from another 4 years of this Presient, especially if he has a Democratic House and Senate.

milcus on February 22, 2012 at 11:17 AM

Cloward – Piven

Once you understand their goals and accept their pure evil, every move they make is as predictable as the sun rising in the East tomorrow.

trs on February 22, 2012 at 11:18 AM

Well, the Debt Commission is working splendidly. It tells Obama what should be done, for the benefit of America, so Obama knows what to do in the opposite. See, smart power!

OldEnglish on February 22, 2012 at 11:18 AM

Step in the right direction, but nothing will happen on tax reform until Spring 2013.

TouchdownBuddha on February 22, 2012 at 11:18 AM

of course this won’t be presented to the public as more bad policy or even the liberal media saying “What we are lowering taxes on corporations now?” No it will be presented as, see even when obama tries to do the very things Republicans claim to want, you bad mouth our President, you all are racists.

This country is to stupid and sound bite attention spanned to solve the problems that face us.

smitty41 on February 22, 2012 at 11:19 AM

Let’s add to this his proposed hike of the tax on dividends, which after adding in additional taxes and levies through Obamacare and the like will effectively reach 44.8%, almost three times the current rate of 15%. Who does this hurt? Everyone who has invested in the stock market, that’s who. Way to discourage investment sport.

Read it and weep.

totherightofthem on February 22, 2012 at 11:20 AM

From Wapo:

Obama will propose lowering the nation’s tax rate to 28 percent. At the same time, however, he will seek to increase the amount of revenues raised overall through corporate taxation by eliminating numerous deductions and loopholes that save companies tens of billions of dollars a year on their tax bills, according to a senior administration official.

In his proposed rewrite, Obama will target oil and gas companies for tax hikes while promising special breaks for manufacturing companies, according to a senior administration official.

$7 dollar gas…..here we come!

Rovin on February 22, 2012 at 11:23 AM

The Enemy Within.

LSUMama on February 22, 2012 at 11:26 AM

ed says obama made a politica miscalculaton by ignoring his own deficit commission. but who got the best of that deal. defense got gutted. wasnt that one of obamas goals. i am not saying obama is infallible but he is surounded by people who are as slippery and ruthless as he is. he can always count on the stupidty and timidity of the republicans. that is a constant.

the only miscalculations he has made so far are impromptu ones e.g. police acted stupidly. anything planned in advance has worked as planned.

casel21 on February 22, 2012 at 11:26 AM

The danger of another 4 years of Obama is almost as dire as preventing Iran from getting a nuclear weapon. I think its fair to say that America, financially, might not be able to recover from another 4 years of this President, especially if he has a Democratic House and Senate.

milcus on February 22, 2012 at 11:17 AM

I think it’s more importnat to keep him from getting another 4 years. At least we can stop Iran from using the nukes…nothing seems to be able to stop Baracky’s nuking of the economy…

CycloneCDB on February 22, 2012 at 11:26 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

The stupid is strong with this one.

I can see stupid4life typing into his Mac’s keyboard, “We need to tax these big greedy companies until they collapse! Dang big greedy companies!”, as he sips a double latte from Starbucks that he picked up while cruising in his mom’s Prius. But even after reading this post, he still won’t see the irony…

Battlecruiser-operational on February 22, 2012 at 11:27 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

I just looked up the word troll and sure as hell, there you were.

MJZZZ on February 22, 2012 at 11:28 AM

And they can take their stupid jobs with them. Who needs jobs?

talkingpoints on February 22, 2012 at 11:11 AM

The only country in the world where most of these companies can operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

“Greater fiscal responsibility”

Nancy Pelosi and the Democrats used that promise lie in 2006 to gain control of the House and Senate (and therefore majority control of the budget-making process).

To win the House and Senate in the 2006 elections, here’s what Pelosi and the Democrats (rightfully) criticized:

Fiscal Year End Date, Majority Party, Increase in Debt (i.e. Annual Deficit)
9/30/2006 Republican majority $574 Billion ($0.574 Trillion)
9/30/2005 Republican majority $554 Billion ($0.554 Trillion)
9/30/2004 Republican majority $596 Billion ($0.596 Trillion)
9/30/2003 Republican majority $555 Billion ($0.555 Trillion)

Those are the four years to which Nancy Pelosi was referring when she authored her 2006 “New Direction for America”.

Here’s what Pelosi promised:

With integrity, civility and fiscal discipline, our New Direction for America will use commonsense principles to address the aspirations and fulfill the hopes and dreams of all Americans. That is our promise to the American people.

Our federal budget should be a statement of our national values. One of those values is responsibility. Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits. Instead of piling trillions of dollars of debt onto our children and grandchildren, we will restore “Pay As You Go” budget discipline.

Budget discipline has been abandoned by the Bush Administration and its Republican congressional majorities. Congress under Republican control has turned a projected $5.6 trillion 10-year surplus at the end of the Clinton years into a nearly $3 trillion deficit– including the four worst deficits in the history of America. The nation’s debt ceiling has been raised four times in just five years to more than $8.9 trillion. Nearly half of our nation’s record debt is owned by foreign countries including China and Japan. Without a return to fiscal discipline, the foreign countries that make our computers, our clothing and our toys will soon be making our foreign policy. Deficit spending is not just a fiscal problem – it’s a national security issue as well.

Our New Direction is committed to “Pay As You Go” budgeting – no more deficit spending.

Again, here is what Pelosi and the Democrats promised in 2006:

Instead of piling trillions of dollars of debt onto our children and grandchildren, we will restore “Pay As You Go” budget discipline

Our New Direction is committed to “Pay As You Go” budgeting – no more deficit spending.

Here’s what Pelosi produced in Fiscal Years 2008 – 2011:

Fiscal Year End Date, Majority Party, Increase in Debt (i.e. Annual Deficit)
9/30/2011 Democrat majority $1,229 Billion ($1.229 Trillion)
9/30/2010 Democrat majority $1,652 Billion ($1.652 Trillion)
9/30/2009 Democrat majority $1,885 Billion ($1.885 Trillion)
9/30/2008 Democrat majority $1,017 Billion ($1.017 Trillion)

They criticized “piling trillions of dollars of debt onto our children and grandchildren”.

They promised “no more deficit spending” in order to win control of Congress, but then went on to produce the four worst deficits in the history of America.

They produced deficits that were more than 2.5 times the size of the deficits they had criticized. They didn’t keep their promise to end deficit spending… no, they more than doubled deficit spending!

The four deficits that Pelosi criticized totaled $2.279 Trillion.

The four deficits that Pelosi produced totaled $5.783 Trillion.

The four worst deficits in the history of America now belong to the Democrats, and are over 2.5 times the size of the previous four worst deficits under Republican majorities.

Let’s talk about:

“Pelosi’s failed policies”,
“Reid’s failed policies”,
“Obama’s failed policies”,
“All Democrat[ic Socialist]s’ failed policies”…

ITguy on February 22, 2012 at 11:29 AM

Why do I get the feeling that this plan will raise my tax burden while the State run Media reports it as a “tax cut”.

forest on February 22, 2012 at 11:31 AM

The Republicans can vote for a destructive tax decrease or against a tax break. Lose-lose.

It’s all manipulation and the politics of short-term points scored.
Instead of politics of measurable economic results.

tomg51 on February 22, 2012 at 11:31 AM

The only country in the world where most of these companies can used to operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

Wow – freedom is a PRIVILEGE. Not a God given right, but a PRIVILEGE. You have no idea how evil you actually are.

CycloneCDB on February 22, 2012 at 11:31 AM

El Presidente Downgrade must have missed this story, or flunked basic logic –

Surtax on wealthy in UK results in lower revenue
http://hotair.com/archives/2012/02/22/surtax-on-wealthy-in-uk-results-in-lower-revenue/

Chip on February 22, 2012 at 11:31 AM

Isn’t this the same White House that produced four trillion-dollar-plus budget deficits?

My copy of the Constitution (Article I, Section 8) says it is up to Congress to collect taxes, to determine how they are spent and to borrow money on the credit of the United States. Has there been a constitutional amendment giving those powers to the President now?

Time Lord on February 22, 2012 at 11:31 AM

“Greater fiscal responsibility”

I wasn’t fooled in 2006 or 2008, but aparently many people were.

I think that 2009 was an awakening for many in the electorate, and the 2010 elections reflected that.

Now, in 2012, will the electorate fall for Obama’s promise lie of “Greater fiscal responsibility”? I don’t think so, and I hope that I am not wrong about that.

ITguy on February 22, 2012 at 11:32 AM

What’s wrong with this picture? Canada is thinking of lowering it’s corporate tax rate to 15%! And don’t forget to mention Obama wants to tax corporations on their overseas profits, too, as well as raise taxes on dividends. Don’t think we’ll see any questions in the debate tonight on CNN on this. Question is will Mittens blast Obama’s plan on Friday. I doubt it! Dems stuck on stupid, as usual.

Bob in VA on February 22, 2012 at 11:32 AM

20 years ago the “global” meme was considered loony bin worthy.

katy on February 22, 2012 at 11:08 AM

Thomas L. Friedman changed all that when he discovered that Flat World.

bettycooper on February 22, 2012 at 11:32 AM

What’s wrong with this picture? Canada is thinking of lowering it’s corporate tax rate to 15%!

Bob in VA on February 22, 2012 at 11:32 AM

That’s why they want a Global Minimum Tax.

CycloneCDB on February 22, 2012 at 11:34 AM

liberal4life on February 22, 2012 at 11:03 AM

liberal4life on February 22, 2012 at 11:28 AM

Congrats – you’re doing a fine job at imitating the Socialists in the National Democratic Party

Chip on February 22, 2012 at 11:34 AM

The only country in the world where most of these companies can operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

You may want to analyse that statement for hypocrisy – as well as stupidity.

OldEnglish on February 22, 2012 at 11:34 AM

The only country in the world where most of these companies can operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

Leverage to do what?

NotCoach on February 22, 2012 at 11:34 AM

he only country in the world where most of these companies can operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

Doubling down on illogical.

DrStock on February 22, 2012 at 11:35 AM

This has to be viewed as just another political document without any serious intent to put the proposal in practice. He did it because, frankly, there is an element in the left that has no clue about economics and really thinks that taxing the hell out of corporations makes sense. Obama’s economic advisors were led by such an idiot for the first two years and she was genuinely shocked when it turned out the socialism she’d been teaching for years didn’t really work in life.

James Pethokoukis takes a long look at the proposal, and declares that Treasury Secretary Tim Geithner should resign for putting his name to it:

Whatever reason works. The man should never have been confirmed by the Senate.

Happy Nomad on February 22, 2012 at 11:35 AM

The current U.S. economic recovery is arguably the worst in modern American history. Incomes are flat, housing is moribund and the past three years have seen the longest stretch of high unemployment in this country since the Great Depression.

Change.

visions on February 22, 2012 at 11:36 AM

Doc Zero’s take on Obama’s Downgrading of the American dream.

Obama Downgrades the American Dream You little people shouldn’t ask for too much. by John Hayward
http://www.humanevents.com/article.php?id=49668

The Associated Press reports those soaring “hope and change” phony-Greek-temple speeches from 2008 appear to have decayed into “hope you can afford a house,” as President Obama runs for re-election in downgraded America.

Implicit in this line of thought is the notion of decay. The salad days are behind us, freedom has failed, and the best Americans can hope for is a little protection from entropy, provided by Barack Obama, with the invoice for his services sent to their children. I guess we weren’t the ones we’ve been waiting for, after all.

Prosperity and growth demand both risk and effort. Achievement means reaching for the stars. Breakthroughs are made by people who are not content to settle for “good enough.” The quest for opportunity is endless. Americans should have no use for a spent politician telling them what ambitions are “realistic.” Pursuing Obama’s downgraded vision of the American Dream is not what made us great.

Chip on February 22, 2012 at 11:36 AM

The only country in the world where most of these companies can operate freely is America. We need to use that privilege as leverage

liberal4life on February 22, 2012 at 11:28 AM

Does stupid run in circles for you?

Actually it doesn’t, and if you think that you are even more delusional than even a normal liberal. You don’t seem to know anything about trade, tariffs, marketing, business planning, accounting, and why corporations are leaving the U.S. in droves to foreign countries to restart their business. Even the businesses that brought back their companies from overseas are just going to go back to Taiwan, or Thailand, or Vietnam…. because of idiots like yourself who have no understanding of business nor economics.

upinak on February 22, 2012 at 11:37 AM

ITguy on February 22, 2012 at 11:29 AM

Epic.

visions on February 22, 2012 at 11:37 AM

Did anyone see Bill O’Reilly on Jay Leno last night? He said Obama is a very nice person, he knows because he has met him and and knows him personally. He also claims everybody likes the president personally. I don’t agree with anything he said. I think Obama has evil intentions disguised as good. What’s sad is O’Reilly has a really big megaphone and can sway a lot of people. Wish somebody could knock him off his pedestal..O’Reilly I mean.

mariee on February 22, 2012 at 11:37 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

How ignorant of economics can liberals possibly be? This ignorant.

DrStock on February 22, 2012 at 11:06 AM

I assumed this was sarcasm since that is exactly what many will do. Easy enough to relocate main out of the country and spin off a local company to contract any work to that has to stay stateside.

OBQuiet on February 22, 2012 at 11:39 AM

the lack of understanding on the part of Obama and his team about basic economics

Don’t you all get it? If we can just assemble the right technocrats and planners the Progressives can defy hundreds and hundreds of years of human economic history. It just didn’t work out this time. We must keep trying! /

visions on February 22, 2012 at 11:39 AM

Does stupid run in circles for you?

Actually it doesn’t, and if you think that you are even more delusional than even a normal liberal. You don’t seem to know anything about trade, tariffs, marketing, business planning, accounting, and why corporations are leaving the U.S. in droves to foreign countries to restart their business. Even the businesses that brought back their companies from overseas are just going to go back to Taiwan, or Thailand, or Vietnam…. because of idiots like yourself who have no understanding of business nor economics.

upinak on February 22, 2012 at 11:37 AM

Yeah – but corporations are BAD. Obama said so, and he’s the smartest president EVER. They said so on the TV.

-Liberal4Life

CycloneCDB on February 22, 2012 at 11:39 AM

CycloneCDB on February 22, 2012 at 11:39 AM

you have done the spock mental mind lock on a liberal, haven’t you?!

upinak on February 22, 2012 at 11:41 AM

Did anyone see Bill O’Reilly on Jay Leno last night? He said Obama is a very nice person, he knows because he has met him and and knows him personally.

mariee on February 22, 2012 at 11:37 AM

I gave up on B O’R. He is just dead-set on the fact that Obama is nice and well intentioned. It is willful ignorance and unbecoming of someone who is as intelligent as he is.

CycloneCDB on February 22, 2012 at 11:41 AM

what about the fact that he actually proposes to lower the corporate tax rate by 7%? all zorba can say is that “it’s not nearly good enough,” although his debt commission recommended exactly this.

Obama has launched a major proposal while deliberately disregarding his own advisory panel’s recommendations.

obama is evil because he disregarded some recommendations of his panel but followed others. what does he think he is, the president?

sesquipedalian on February 22, 2012 at 11:43 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Brilliant strategy. Liberals already whine about “shipping jobs overseas”; now you want to just encourage whole companies to do the same. Do you actually ever engage that tissue mass in your head called a brain?

Bitter Clinger on February 22, 2012 at 11:43 AM

you have done the spock mental mind lock on a liberal, haven’t you?!

upinak on February 22, 2012 at 11:41 AM

It’s fun for me! I think and analyze all day. With this – I get to stop thinking and pretend there’s no such thing as logic.

CycloneCDB on February 22, 2012 at 11:43 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

WOW, you are talking like a true communist. It is what you call the “greedy” companies who end up paying for a lot of the parasites who make up the so called democrat party. If they pack their bags you parasites would starve to death. You parasites can only survive because of companies and othe producers paying your bills.

mnjg on February 22, 2012 at 11:45 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

They will. And then what? Will you be hiring all of us?

magicbeans on February 22, 2012 at 11:46 AM

Yep, make doing business MORE expensive. MAKE THOSE COMPANIES PAY! It’s not like they’d pass on the costs to the consumer. That would never happen. Right? And companies facing stiff competition would NEVER lay off workers in order to reduce costs. Right?

GarandFan on February 22, 2012 at 11:46 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

So the plan of Barack Obama, the Obama Party and its OWS supporters is to destroy or drive out all companies, businesses, and corporations in the United States.

Publicize this, and watch how fast Barack Obama stays in office.

northdallasthirty on February 22, 2012 at 11:48 AM

he will seek to increase the amount of revenues raised overall through corporate taxation by eliminating numerous deductions and loopholes that save companies tens of billions of dollars a year on their tax bills, according to a senior administration official.

Translated. This Harvard Poli Sci retard will take on yet another profession he had no clue whatsoever of, Accounting. In Accounting, various expenses are deducted from sales to come up with GAAP net income, reported to shareholders. What our fearless Poli Sci retard has done, is to declare these expenses, such as payroll, marketing, depreciation, ect., ‘loopholes’. The more ‘loopholes’ eliminated, the closer we can get to applying that 28% rate to gross sales, which I guess is the endgame for this trash.

I feel that all this will work out every bit as well as anything else the Poli Sci retard class comes up with.

MNHawk on February 22, 2012 at 11:49 AM

sesquipedalian on February 22, 2012 at 11:43 AM

Sorry, spin boy. Your fellow lib just let the cat out of the bag that Obama’s plan is to destroy or drive out all companies, businesses, and corporations in the United States.

northdallasthirty on February 22, 2012 at 11:50 AM

Dem playbook, co opt issues and distort them.

What could be wrong with Affordable Housing?

What could be wrong with Affordable Health Care?

What could be wrong with Corporate Tax reform?

The House should take his bill, change all the numbers to 15%.

They should delete that things they don’t like, and say they had to compromise to get there. We need to start wailing loudly about how much we have had to compromise.

Then,
And send it back to him.

Fleuries on February 22, 2012 at 11:50 AM

However, from a political perspective, this may be even worse than its economics. For the second straight year, Obama has launched a major proposal while deliberately disregarding his own advisory panel’s recommendations. That turned into political disaster last year, when Obama’s budget ignored his own appointed deficit panel. His budget got voted down unanimously in a Senate controlled by his own party, making him look extreme and out of touch on budgetary issues.

Now his new corporate tax proposal ignores the recommendations from the panel Obama created to much fanfare last year as part of his focus on job creation and economic growth. The obvious conclusion is that Obama has prioritized punitive tax changes on American business in order to fund his spending expansion over economic growth. Republicans need to emphasize that Obama’s job council turned out to be nothing more than a smoke screen, just the same as Simpson-Bowles, and that this corporate tax “reform” is anything but.

These advisory panels are never going to be anything but window dressing with Obama. He’s smarter than all of them combined. He’s not going to take their advice because he’s already made up his mind on what track he’s going to follow.

Bitter Clinger on February 22, 2012 at 11:50 AM

Of course, this was perfectly timed to allow John King to ask the GOP candidates about it tonight and get them all talking about “Obama’s bold tax reform proposal” instead of their own tax proposals. None of them will have had time ot read Obama’s plan or react responsibly, but you can bet King will try to force them to.

rockmom on February 22, 2012 at 11:51 AM

Do you seriously not understand that corporations do not pay taxes? Every tax, fee, and cost imposed on a corporation by the government is simply passed on to the consumer, either directly as with a sales tax or indirectly by raising the cost of the good. No company is simply going to have their taxes raised and decide to absorb that cost.

That is why the corporate tax rate should be zero. Because corporate income taxes are a fiction.

Shump on February 22, 2012 at 11:12 AM

I have seen a lot of people make this claim.

I agree that the Businesses do not bear the cost taxes. But it is not all passed on to consumers. If it could be than a business would be acting irrationally by NOT raising prices sooner and making more profit(competitive issues aside).

The cost is passed on to consumers, shareowners and WORKERS.

Fair article on the effects is at http://www.econlib.org/library/Enc/CorporateTaxation.html

OBQuiet on February 22, 2012 at 11:51 AM

Sorry, spin boy. Your fellow lib just let the cat out of the bag that Obama’s plan is to destroy or drive out all companies, businesses, and corporations in the United States.

northdallasthirty on February 22, 2012 at 11:50 AM

you mean that pathetic sockpuppet?

sesquipedalian on February 22, 2012 at 11:52 AM

what does he think he is, the president?

sesquipedalian on February 22, 2012 at 11:43 AM

Did you say the same thing when he Downgraded the rule of law and dictated that private insurance companies provide free services?

Chip on February 22, 2012 at 11:52 AM

“We need true tax reform that will at least make a start toward restoring for our children the American Dream that wealth is denied to no one, that each individual has the right to fly as high as his strength and ability will take him…. But we cannot have such reform while our tax policy is engineered by people who view the tax as a means of achieving changes in our social structure.”
Ronald Reagan

I just wanted to speak to you about something from the Internal Revenue Code. It is the last sentence of section 509A of the code and it reads: ‘For purposes of paragraph 3, an organization described in paragraph 2 shall be deemed to include an organization described in section 501C-4, 5, or 6, which would be described in paragraph 2 if it were an organization described in section 501C-3.’ And that’s just one sentence out of those fifty-seven feet of books.
Ronald Reagan

I don’t think its any less complex now.

Speakup on February 22, 2012 at 11:52 AM

I bet “greater fiscal responsibility” means “make the rich pay their fair share.”

The Rogue Tomato on February 22, 2012 at 11:54 AM

Obama to propose lowering corporate tax rate to 28 percent

WaPo headline.

forest on February 22, 2012 at 11:54 AM

They should delete that things they don’t like, and say they had to compromise to get there. We need to start wailing loudly about how much we have had to compromise.

Then,
And send it back to him.

Fleuries on February 22, 2012 at 11:50 AM

in other words, they should change it to a “conservative” wet dream, pretend that they had to make difficult compromises, and hope that nobody notices.

i, for one, would totally believe it and i’d definitely change my vote to whichever nutjob the gop nominates.

sesquipedalian on February 22, 2012 at 11:56 AM

Did you say the same thing when he Downgraded the rule of law and dictated that private insurance companies provide free services?

Chip on February 22, 2012 at 11:52 AM

stop embarrassing yourself. no insurance company is forced to provide free services.

sesquipedalian on February 22, 2012 at 11:58 AM

sesquipedalian on February 22, 2012 at 11:52 AM

Actually it’s a pretty good rendition of the rants from the Socialist-Left, just a wee bit over the top, so what’s the problem?

Is she illustrating just how mind numbingly illogical you leftists truly are?

Chip on February 22, 2012 at 11:58 AM

I disagree with this. We need to tax these greedy companies to oblivion.
If they don’t like it they can pack their bags and get the hell out

liberal4life on February 22, 2012 at 11:03 AM

Can’t. Fix. Stupid.

1) They haven’t liked it and that’s why they’ve been outsourcing for years and years. Oboobi wants to amp up the pressure which is a gaurantee that revenue will be even lower

2) You won’t like it, when Oboobi ups the taxes on overseas companies bringing their products in country, cause you’ll pay more for that iPod or whatever.

3) Understand that whatever taxes corporations pay, gets passed to consumers and employees. They never “pay” taxes, all they do is frontload that tax, then get refunded by you. It doesn’t matter what the tax rates are, corporations will get their 5, 10, 50% or whatever is their targeted profit.

4) You also won’t like it if you own stocks, as it becomes harder to grow your portfolio. Maybe you’re young and don’t care because you think SS will be there for you, but your parents probably do, as it affects their 401k etc.

AH_C on February 22, 2012 at 11:59 AM

What is depressing is that if the republicans fight it they will either be painted as being against tax cuts, or standing up for corporate loopholes and only caring about the rich and we will loose another political battle because the majority of American people are stupid.

rose-of-sharon on February 22, 2012 at 11:59 AM

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