Companies Weigh New Coalition to Push for Lower Tax Rates.

[Montauk6]

Several major U.S. businesses are weighing a big new push for a corporate tax overhaul, hoping to seize an opportunity being created in the current debate over debt and deficits, according to people familiar with the situation.

In meetings and conversations over the last week or so, a core group of at least half a dozen big companies including Verizon Communications Inc., Boeing Co., the Walt Disney Co., Altria Group Inc. and major railroads have been exploring the idea of forming a coalition to seek sharply lower corporate tax rates. The broad aim is to improve the U.S. economy and business competitiveness. The U.S. corporate rate of 35% is among the highest in the developed world, and many tax experts believe it drives investment elsewhere. The average of other developed economies is around 25%.

A dramatic reduction in the U.S. corporate rate likely would require paring back some of the breaks that currently benefit businesses, to reduce the impact on the Treasury. Agreement on that part of the equation has been elusive.

The new coalition remains at an exploratory phase, according to several people familiar with the discussions. Verizon, Boeing and Altria declined to comment. Disney didn’t immediately respond to a request for comment

Continued...http://blogs.wsj.com/washwire/2011/08/12/companies-weigh-new-coalition-to-push-for-lower-tax-rates/

[sakabatou]

1. "We want more money to horde."

[begin_within]

2. Many of them pay $0 and they still want to pay less?

[dionysus]

3. a lower rate with zero loopholes would bring in more money than the 0% some are paying, but i'll

take a pass on them pushing that.

[DJ13]

4. Translation: They cant cut more people to increase profits

They cant sell more to increase profits because every other company cut people, so theres less demand.

The only means left to justify more huge bonuses for the execs is to add to the bottom line by slashing taxes.

[blogslut]

5. John McKinnon is FOS

That, or he's merely re-wording a press release.

http://www.goiam.org/index.php/imail/latest/8968-us-corporations-have-second-lowest-tax-rate-in-the-developed-world

The CTJ study found that when measured as a percent of Gross Domestic Product (GDP), U.S. corporations contribute the lowest share of tax revenue among 26 Organization for Economic Cooperation and Development (OECD) countries, behind only Iceland. U.S. corporations have managed to lower their tax burden from four percent of GDP in 1965 to only 1.3 percent in 2009.

Further, the overall tax rate in the U.S. is the third lowest among 28 OECD nations, with only Chile and Mexico having lower overall tax rates. The CTJ report concludes “the most recent data from the Organization for Economic Cooperation and Development (OECD), the Office of Management and Budget and the Census Bureau reveal that the U.S. is already one of the least taxed countries in the developed world.”

http://www.ctj.org/pdf/oecd201106.pdf