Mike Huckabee News
Aug 05 2013
America has the highest corporate tax in the world at 35 percent. There’s no question that it’s driving away investment capital and hampering job growth. Even President Obama recognizes that it’s too high. But instead of just cutting it, this week, he offered a solution with some strings attached. He suggested lowering the corporate tax rate to 28 percent, in exchange for eliminating tax loopholes and deductions that let corporations with good accountants and lawyers pay far less. As to whether that will please investors enough to get them to trust their money to America, that’s anybody’s guess. But it’s already got small business owners squealing.
Many small business owners pay taxes at the top individual tax rate, which Obama just got Congress to raise to nearly 40 percent. Small business creates most of the jobs in America, so why would we punish them with a 40 percent tax, while letting big business pay just 28 percent? This is why tinkering around the edges of such a complicated tax system always just ends up with more unintended consequences. The alternative? Well, we could just scrap the whole mess for a simple fair tax that taxes consumption instead of productivity. Then business couldn’t use the tax code to cheat the government. But government couldn’t use the tax code to manipulate business. And unfortunately, it often seems that raising money to pay for government services is the least important purpose of our modern tax code.