Skip to comments.Obama plan will end dozens of business tax breaks: Geithner
Posted on 02/14/2012 2:10:24 PM PST by NormsRevenge
WASHINGTON (Reuters) - The Obama administration's corporate tax reform plan will end "dozens and dozens" of tax breaks, U.S. Treasury Secretary Timothy Geithner said on Tuesday as he defended the White House's election-year call for higher taxes on the wealthy.
Within days, the administration is set to unveil a blueprint for revamping the corporate tax system aimed at leveling the playing field for all companies, which pay wildly differing levels of taxes, while lowering the top corporate tax rate.
Companies are clamoring for a cut in the top 35 percent corporate tax rate but disagree about how to how eliminate special tax preferences that benefit selected industries.
Geithner spoke before the Senate Finance Committee a day after President Barack Obama unveiled a $3.8 trillion budget-and-tax proposal that called for aggressive government spending to boost the economy and higher taxes on the rich.
"We think they can handle it. We think they can afford it," Geithner said.
The budget proposal is seen as a campaign document, with few elements expected to win approval this year in a divided U.S. Congress as elections approach in November.
Republicans criticized Obama's budget, saying it chooses winners and losers and moves away from tax reform.
Geithner said it was a "fair question."
He said the Obama plan would "wipe out a very substantial, dozens and dozens of special tax preferences," in the corporate code, but keep a "very limited" number targeting incentives for "creating and building stuff in the United States."
Senators from both parties said Obama needs to use the bully pulpit to push major changes to the tax code.
The last time major rewrite of the U.S. tax code came in 1986 under the leadership of Republican President Ronald Reagan.
(Excerpt) Read more at news.yahoo.com ...
Unfortunately, higher corporate taxes mean higher prices for all of us. Can you spell i-n-f-l-a-t-i-o-n?
WHY NOT CUT SPENDING?
The point is to crash the system so it can be replaced with something “more progressive”.
Increased spending accomplishes that.
He probably got wind that some middle-class folks out here were using business tax deductions to reduce their overall tax burden.
Can’t have that.
The brilliant WH minds have mapped out a course to encourage businesses to hire more people (Laughter/applause segment here).
WHY NOT CUT SPENDING?
have to pay for all the free cell phones , internet +computers , cars + gas and houses +++
I don’t think president dumbass realizes how close he is to having riots in the street and angry mobs on the front lawn of the white hut. I suspect its not the ows’rs that will be doing the rioting....red
DEAR GOD DELIVER THIS MONSTER AWAY FROM US!
They refuse to except the fact that business don't pay taxes, that it's always us people that pay taxes, included their own dumb selves. This robs the entire economy until it slowly suffocates and dies like their European model is doing currently!!!
God bless America and save the threatened geese that lay the golden eggs!!! God bless the makers and damn the takers!!!
You mean he’s going to finally back out of those tax breaks for the “green” businesses? Good!!
Amen! We desperately need some divine intervention.....and quick.
“We think they can handle it. We think they can afford it,” Geithner said
.......................................................And if they can’t-—tough Shyt.
That is the Obama attitude.
Absolutely right.w e “can’t have that” because it wouldn’t be fair.
That ought to get the economy growing [insert double face-palm here]
I’ve got a better Idea:
Remove ALL Corporate tax credits and deductions ... along with the Corporate income tax. Instead, replace the tax revenues from corporations (both income tax and payroll tax) with a 10% tax on all employment costs including the embedded costs in imported goods. What could be more pro-growth than having a 0% corporate profits tax rate ?
Domestic labor costs are $6.5T, fringe benefits are $1.5T, and imports are $2T, giving a tax base of $10T and tax revenue at 10% of $1T — roughly the same as the combined employer payroll tax and corporate income tax — without all the overhead and lobbying for deductions and credits.
Eliminate the worker side of payroll taxes, and use just the above revenue to fund SS & Medicare. SS benefits are limited to the amount vested as of the end of contributions. Let people save the payroll taxes they are no longer paying to provide their own retirements. Replace Medicare with an HMO style where doctors and hospitals bid for randomly selected groups of patients for which they must provide whatever care is needed.
Set a single 15% tax rate for individuals, applied to all income after allowing the existing deductions, but the final tax owed cannot be reduced below 10% of gross. This would collect $1.6T tax revenue.
Figure another $200B for all the other Federal taxes on fuel, alcohol, tobacco, mining, air travel, communications, etc.
Total revenue $2.8T and a much more pro-growth environment.
Thanks Vintage Freeper for posting this: