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Corporate tax cut a no-brainer

My Opinion
Ross Schulz, Staff Writer

Real change that could lead to an improved job market and overall economy has finally surfaced recently with President Barack Obama’s talk about cutting the corporate tax rate from 35 percent to 28 percent.
Obama may only be making such statements to show he’s not as far politically left as some suggest, but at the same time knowing full well that such a law will not be put in place during an election year.
Plus, by aligning (somewhat) with Republicans, Obama minimizes the issue as a factor in the upcoming General Election.
The president also said he’ll broaden the corporate tax base, to appease his voting base, by ending multiple tax breaks.
For many years, U.S. corporations have said the 35-percent mark, which is the second-highest rate, behind Japan, is way too high. The United States will take the big No. 1 spot in that category in April, after Japan lowers its rate.
American Enterprise Institute’s James Petokoukis said that of all major types of taxes, corporate taxes are found to be the most harmful for growth.
Elected officials should do everything possible to enable growth.
Obama should have tried to slash the corporate rate the first month he was in office, when the economy was struggling mightily through the Great Recession. The fact that he waited until the year of his re-election bid gives validity to the argument that he did it for political reasons only. The economy has made small, baby steps forward, but it could have made giant leaps if Obama would have pushed for the corporate tax reduction earlier in his term.
The administration’s plan was introduced by Treasury Secretary Timothy Geithner.
‘We want to restore a system in which American businesses succeed or fail based on the products they make and the services they provide, not on the creativity of their tax engineers or the lobbyists they hire,’ he said.
Obama later said the current corporate tax system is ‘outdated, unfair and inefficient.’
No argument there.
Republican presidential candidate Mitt Romney went even further and said the rate should be dropped to 25 percent.
Some in the business community applauded Obama’s efforts as being a step in the right direction, but others said it was inadequate and needs to go further.
Regardless of Obama’s motive with the announcement, it is refreshing to see he is at least willing to cut the corporate tax rate, one of the most important aspects of future job growth and economic improvement for the country.

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