All Commentary
Thursday, February 23, 2012

Obama Corporate Tax Plan Gets Mixed Reaction

“Cutting corporate tax rates and deleting loopholes is just what most economists prescribe for the tangled U.S. tax code. So why isn’t everyone cheering the plan President Barack Obama unveiled Tuesday to slash the top corporate tax rate and end breaks that let some companies pay little or nothing in taxes? Economists note that Obama’s plan would carve up the very playing field the administration says it wants to level. It would give manufacturers preferential treatment: Tax breaks would effectively cap their rate at 25%. Other companies would pay up to 28%…. Some say such varying rates can distort the economy by diverting investment into some industries and away from others that might pack a bigger economic punch.” (USA Today)

Industrial policy by another name.

FEE Timely Classic
“The Power to Tax Is the Power to Destroy” by Clarence B. Carson