I don't agree with all of Clinton's "14 ways to put America back to work," but I definitely believe he's right about one of them: cutting corporate taxes. Yes, you read that right. The chief paragon of the Democratic Party espouses cutting corporate taxes, while the majority of his political chums, including President Barack Obama, advocate raising taxes on the wealthy. In his Newsweek article, Clinton was emphatic: "Cut corporate taxes. ... I'd be perfectly fine with lowering the corporate tax rates (and) simplifying the tax code."
America's corporate tax rate is now the second-highest in the world. Since 1993, it has been 35 percent. Lowering it would better position America to compete with other countries, reduce the loopholes that cause unfair disparities and, mostly, bring production and offshore monies back within our country and economy.
Six months ago in his State of the Union speech, President Obama coddled the idea of lowering the corporate tax rate. But ever since, his actions have affirmed that it wasn't a very serious or long contemplation, especially in light of his proposals to further tax the wealthy, corporate jet owners and oil companies.
Robert McDonald, CEO of Procter & Gamble Co., and groups such as the Washington-based Business Roundtable have been trying for months to get the Obama administration and lawmakers to set aside deficit concerns and focus on decreasing the corporate tax rate. Even the Bowles-Simpson plan recommended it, but it, too, was rejected by the present administration.
So why hasn't the Obama administration given this corporate shot in the arm to our economy? Answer: According to the congressional Joint Committee on Taxation, each percentage point reduction to the 35 percent corporate tax rate could cost $8 billion or more a year in revenue to the Treasury. There's the rub!