Corporate tax reform and jobs spending.

[HansOslo]

I don’t know if this is discussed elsewhere on the forum. If that is the case, feel free to delete this thread.

It looks like the President will propose a “grand bargain”, which includes a lot of interesting policy suggestions.

One of them is an overhaul of the corporate tax code. The White House apparently wants a new tax rate of 28%.

Another item is a fee or a tax on the profits American companies have amassed overseas.
This fee is to be used on paying for some of the job proposals the President wants. These include opening manufacturing insitutes and investing in community colleges to train workers.

http://www.washingtonpost.com/business/economy/obama-wants-to-link-corporate-tax-reform-jobs-spending/2013/07/30/02fd652c-f918-11e2-b018-5b8251f0c56e_story.html

Even though the specifics of this proposed grand bargain haven’t been outlined, it looks like something reasonable people in both parties should be able to agree on. I’ve read somewhere that the corporate tax code is largely the same as when Reagan was president, which means that it is obviously time to revise it. The rate is lower in most of Europe, even in Scandinavia. I can see why the GOP wants an even larger reduction, but to go from 35 to 28 isn’t that bad. I assume the bargain will also include the removal of some deductions and loopholes.

I don’t know enough of how a fee or tax on overseas profits should be fashioned, but some of these job proposals look like sound policy. The US (like most of the West) needs to educate skilled workers, if there is to be a renaissance in manufacturing.

So what are the chances of the parties being able to strike a bargain on this?

[True Federalist (진정한 연방 주의자)]

So what are the chances of the parties being able to strike a bargain on this?

Almost none.  This is one of those issues that there is a general agreement that something ought to be done and even general agreement on the rough outlines (i.e., lower rates in exchange for fewer loopholes) of what should be done, but there is no urgency here politically. The wingnuts in the House GOP aren't going to agree to anything that isn't 110% of what they want unless they absolutely have to, and they don't have to politically. This isn't immigration where the politics may cause something to be done this Congress or a fiscal bill which must be passed or the government shuts down.

[Mr.Phips]

Obama is smart to offer this and tackle corporate tax reform as a stand alone issue.  You cannot possibly have revenue neutral individual tax reform that lowers the top rate without taking a hatchet to the middle class.