For Growth, a Broader Tax Base … But With a Few Caveats

By January 10, 2011Economy, Taxation

New York Times, The Caucus blog, Changing Corporate Tax Is a Tricky Balancing Act,” reports that Treasury Secretary Geithner will meet Friday with top business executives to discuss tax reform:

The executives, the chief financial officers of major companies like Disney, Procter & Gamble, Cisco and Caterpillar, will begin a ground-level discussion of overhauling corporate taxation. The administration has three conditions: that a revamped system enhance efficiency and economic growth, that it increases investment in the United States and, most consequentially, that it brings as much money as the old system.

“We’re going to launch a process around that,” Mr. Geithner said in an interview. The contours of that process, and its endpoint, remain hazy….

[Major] manufacturing firms, which have far more political champions than Wall Street does, would suffer, and have vowed to fight changes that harm them.

“We’d be opposed to a system where the base is broadened on the backs of manufacturers,” said Dorothy Coleman, a vice president of the National Association of Manufacturers. “That’s a deal breaker.”

For more on the NAM’s positions on corporate taxation, go here.

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