Kevin Hall, McClatchy, “Business leaders wary of Obama’s plan to cut corporate tax rate“:
“Do I think it can be done? Yes. But it’s going to be very painstaking, it’s going to be difficult,” said Dorothy Coleman, the vice president of tax policy for the National Association of Manufacturers. “If it was easy, it would have been done a long time ago.”…
“I think our overall feeling on corporate tax rates is they should be as low as possible,” said NAM’s Coleman. She offered only a qualified endorsement because Obama said the lowering of corporate tax rates can’t add to the deficit, projected Wednesday by the nonpartisan Congressional Budget Office to hit a record $1.5 trillion this year.
“We support fiscally responsible tax reform, but starting from the beginning, that it’s got to be revenue neutral almost by definition means creating winners and losers,” Coleman said. “When you target one industry over another, that changes the conversation.”
USA TODAY, “Corporate tax rates beg for cut but reform tough to achieve, “Scott Hodge, head of the non-profit Tax Foundation, says tax reform is likely this year because Japan is slated to cut its corporate tax rate in April, giving the U.S. the highest rate. ‘We’ll have to do something,’ he says.”
Hodge covered the Japanese developments in a blog post last month, reporting that the cabinet of Prime Minister Naoto Kan had OK’d reducing the corporate tax rate by 5 percentage points, a move expected to be finalized when the Diat approves the government’s budget this spring.
Hodge also addresses the impact of the worldwide tax system — which the United States continues to use — versus the territorial tax system. (continue reading…)