Posts Tagged ‘corporate tax’

EPA Regulations, International Taxation and Hitting the Sweet Spot

Will the EPA’s proposal to curb greenhouse gas emissions allow state-based carbon taxes? The new regulations would give states broad flexibility to require power plants to meet tough emissions standards, including creating new cap-and-trade systems. But the 645-page proposal never uses the word “tax.” The OECD wants to improve international taxation. The Organization for Economic […]

Paying for Corporate Tax Rate Cuts is Hard

Covering the revenue loss from deep individual income tax rate cuts while maintaining the income tax’s current progressivity is difficult, as Howard Gleckman explained here last week. It turns out that paying for corporate tax rate cuts is even harder. And new Tax Policy Center estimates show that lowering corporate tax rates without paying for […]

Large U.S. Firms Paid a 16.6 Percent Federal Tax Rate

A new analysis by the Government Accountability Office finds that in 2010 large U.S. corporations paid an average effective tax rate on their worldwide income of 22.7 percent and U.S. federal tax of only about 16.6 percent.  The federal rate was less than half of the 35 percent statutory rate. Large firms that made a […]

Hiking Dividend Taxes to Pay for a Corporate Rate Cut

Finland’s government recently announced a broad fiscal reform package that cuts corporate tax rates—financed in part by higher taxes on corporate dividends. The plan makes sense for Finland and is worth considering here at home. Finland will lower the corporate rate to 20 percent in 2014, down from the current rate of 24.5 percent (and […]

New Ways to Think About a Tax on Public Companies

Suppose someone proposed a special tax on businesses that make their ownership shares publicly available in affordable, easy-to-sell units. Such an idea would probably generate a lot of push-back. Efficiency advocates might complain that it taxed the very attributes that make equity markets efficient. Progressivity advocates might object on the grounds that it taxed those […]

Romney’s Tax Plan Really Does Favor the Rich

Despite evidence to the contrary, there is a lingering view that Mitt Romney’s tax plan would primarily help middle-income households and not favor the rich. Yet TPC’s analysis of the plan clearly showed that high-income households would win big and others would do less well. Poor families would actually lose, relative to the taxes they’re […]

Should We Cut Corporate Taxes By Raising Rates on Investors?

While there seems to be growing agreement in Washington that the U.S. needs to cut its tax rate on corporations, there is (surprise) no consensus at all on how to pay for this. One way: Raise taxes on capital gains and dividends.    This idea was one element of the broad tax reforms proposed last year by the chairs of […]

Obama’s Fruitcake and the Truth About Business Taxes

In his speech yesterday to the U.S. Chamber of Commerce, President Obama doubtless pleased many in his audience by repeating the business community’s favorite mantra about U.S. taxes:  “Another barrier government can remove,“ he said, “is a burdensome corporate tax code with one of the highest rates in the world.” Now, what the president said […]