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Showing posts from February 27, 2012

Obama's proposed tax reforms face challenges

Business Times - 28 Feb 2012


Obama's proposed tax reforms face challenges

By LEON HADAR
WASHINGTON CORRESPONDENT

SO what's not to like about President Barack Obama's proposed changes to the US corporate tax structure? After all, both Democrats and Republicans, as well business executives and labour leaders, seem to agree that the current US corporate tax code is useless and riddled with loopholes, breaks and credits that are crafted by Washington lobbyists to favour their powerful clients. At the end of the day, all these loopholes reduce the tax revenues that the federal government is supposed to collect.

Moreover, since the current corporate tax of 35 per cent is higher than in most of the other major industrialised nations, it seems much cheaper to do business in Asia and Europe, placing the US economy at a disadvantage at a time when very few politicians and analysts disagree on the need to increase the global competitive edge of the American economy and ensure that Americ…