Obama's Corporate Tax Reform Proposals

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Obama's corporate tax reform proposals Introduction: There has been criticism on corporate tax ever since it was introduced. One argument advanced that shows the burden of corporate tax is that had Bill Gates in 1975 opened the Microsoft Corporation out of the US, say in Bahamas, the company would have been richer. In fact Mr. Gates then went and did just that. The problem is that any company that does business from the US, either within it or transnational has to be taxed of all income in the US but earning outside is considered a deferred income. Thus the untaxed money outside is used for further investment. (Shaviro, 2011) The corporate tax is the curse for economic growth. According to the former Presidential adviser Boskin, President Obama should look up corporate income tax. This suggestion was put forth in 2010. At that time the U.S. had the second-highest corporate income tax rate of any advanced economy. On the other hand the countries like Germany and Canada reduced their corporate tax rate, rendering American companies in poor position globally. (Boskin, 2010) Though the deductions for interest and other features helped to reduce tax, corporate tax sees to it that there is no investment and the capital has become internationally mobile. Again the taxes along with corporate tax suffer a second tax as the dividends are taxed. It was shown in 2010 that the capital from the US is moving out and in future the corporate tax will cause the workers too bear the

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