Obama suggested Congress cut corporate tax rates – long a goal of Republicans – while simultaneously making investments in job creation programs, which Democrats and the president have been championing.
In the past, both Obama and Republicans have insisted that corporate tax reform be passed alongside reform for individual earners. Republicans argue that some small business owners file taxes as individuals, and would only benefit from an overhaul of the entire tax code.
The president’s plan would propose slashing the corporate tax rate to 28% from 35% while making the filing process simpler and ramping up incentives for small businesses to hire workers.
Obama is tacitly making the argument that lowering the corporate tax rate will result in more tax revenue for the federal government that would allow him to spend more. What’s fascinating about this is that this is something Democrats have vehemently argued against for decades. “The economy is a zero sum game, dummy. If we cut taxes, then the government will have less money”. Except any high school kid that takes an apolitical economics course knows that economics isn’t a zero sum game, that wealth can be created (if it’s allowed to).
What’s distressing about President Shitbag’s statements is that there’s no mention of the tax rate for small businesses which is currently thirty-eight fucking percent. No, I’m not making that up. Cutting the corporate tax rate is a step in the right direction but it will do far less to stimulate a dying economy than a tax cut for small businesses. This is merely a small thank you from a corporatist to the corporatists that put him in power.
But hey, I’m sure there’s no relationship between our shitty economy and having the highest corporate income tax rate in the world, right? It’s that asshole George Bush’s fault.