Would ending corporate tax breaks make dent in deficit?

[OhioChick]

Sunday, June 05, 2011, 10:00 AM

WASHINGTON -- As a liberal tax-code activist, Robert McIntyre shocked Washington in 1984 when he revealed that General Electric was one of 17 companies that paid no U.S. corporate taxes for three straight years.

The finding by McIntyre's organization, Citizens for Tax Justice, sparked national outrage that helped pave the way for the Tax Reform Act of 1986. That landmark legislation eliminated tax loopholes to broaden the tax base while also lowering the corporate tax rate.

It also increased corporate tax revenue flowing into the Treasury by 34 percent.

As the Obama administration readies a proposal to overhaul the nation's corporate tax structure once again, some of the same tax-code giveaways that prompted the 1986 overhaul have reappeared. GE's low U.S. corporate tax burden is still ruffling populist feathers, lobbyists and legislators have padded the tax code with hundreds of new loopholes and McIntyre is again agitating for change.

More: http://www.cleveland.com/business/index.ssf/2011/06/would_ending_corporate_tax_bre.html

[elleng]

1. Small dent, imo, but would do a lot re: people's perception of fairness.

[Lasher]

2. That would be tough to get through Congress nowadays.

Most Republican members of Congress have sold their souls to Grover Norquist.

[Scuba]

4. With R's holding the House, impossible. After 2012 then. n/t

[Lasher]

9. Even then we would have to use reconciliation in the Senate if we could somehow grow a spine.

But before we can do that, we'll have to retain control of the Senate. Today we outnumber the GOP by 53 to 47. But next year we'll have 23 seats up for grabs (including the 2 independents who caucus with us) and the Republicans have only 10 at risk.

[dkf]

8. The "deal" there is reducing rates while getting rid of loopholes.

Obama's plan designed this to raise revenues. Republicans might argue with this, but they would have to agree that as an overall marketing plan to the rest of the world regarding tax rates, it would be a great sell.

[Scuba]

3. Well, a few billion dollars means a few thousand dollars worth of medical...

...services for a few million People.


It's a start.

[John_Adams]

5. I would favor additional tax cuts for small businesses...

Small businesses are just like small people. They can't afford to fund a K Street team to ensure that tax laws are written in their favor.

[aquart]

6. 98% of the wealth needs to be mined for revenue.

Not the piddling 2%. That's just good business sense.

[dkf]

7. It makes sense to me that if we got rid of loopholes we could get at least the 34% they got the last

Time. Aren't corporate taxes at all time lows? Aren't profits at highs? That says to me fixing loopholes will have a pretty significant impact.

[baldguy]

10. Want to REALLY eliminate the national debt?

Confiscate 50% of the property of the richest 1%. After all, they're the ones who've benefited from all that deficit spending by the federal govt.

[Scuba]

11. But, but, but...

...that would leave them only fabulously wealthy. How would they be afford gas for the Mercedes on Maui and the one in London (and the one in....etc., etc., etc.).

[Donnachaidh]

13. And treat the ceo's of banksters who caused the problem like drug pushers

Found guilty -- seize EVERYTHING. EVERY piece of property - every antique - every account. Put their families out of the house(s).

WHY do we do all this to drug pushers and then slap the banksters on the wrist?

Want the banks to behave? SEIZE ASSETS of the CEO's responsible for the bank. ALL of it.

You'll see just how quick they get their shit in order. Guaranteed.

[plumbob]

12. If would get just 20% of the TWO TRILLION in cash being held

by corporations, that would be $400 billion a year. Pretty good dent. 90%?(my personal choice). $1.8 trillion per year. Good-lookin' dent.

[bemildred]

14. Coporations should be treated just like any other "person".

No special treatment.