Reduce Taxes On Corporations & Raise Taxes On Corporations???
How Does That Work?
All right, all right.
As a conservative radio talk show host, columnist, and not a politician, I wasn’t required to sign the Grover Norquist document promising to never raise taxes.
Therefore, I feel that my most recent epiphany does not violate any sworn oath or handshake deal that I had made.
Unlike my other so-called conservative brethren, such as Lindsey Graham, Bob Corker, and Saxby Chambliss, I have a very simple solution that both President Obama and John Boehner should be able to live with: Reduce the taxes on corporations and raise the taxes on corporations.
Ahhh, you say, he talks out of both sides of his mouth.
Well, isn’t that what legislators have been doing for years? But in this instance, it works.
For all small corporations, C-corporations, Sub S-corporations, and even LLCs, reduce their tax rate to 20%, a real 20%.
For all large corporations, even those that are currently in a 28% tax bracket or higher, decrease their tax rate to a flat 20%.
On the other hand, keep in mind that by utilizing a host of tax advantages, most of our large American multinational corporations currently pay zero income tax.
However, in my opinion, this dynamic group which is dominated by such luminaries as GE, Exxon Mobil, and a multitude of others who declare terrific earnings per share each quarter should all be taxed on their proclaimed earnings.
Therefore, regardless of one-time deductions, unusual occurrences, and questionable transfers, simply multiply the bottom-line reported total earnings by 20% and have them write a check made payable to the IRS.
By implementing this effective tax code, the argument that the backbone of America has been negatively impacted will now be lifted, and Main Street can continue on with the business of business.
Thus, Boehner and his Republican brood can stand tall and say they have not abandoned the Norquist pledge.
In addition, President Obama could then visit the Rose Garden, surrounded by Harry Reid, Nancy Pelosi, and perhaps a host of thousands, and exclaim the top 2% has not been cut a separate deal.
After all, aren’t most of the top 2% also the beneficiaries of a zero-corporate tax policy? The problem with my epiphany, however, is quite obvious.
One way or the other, most of the checks written for re-election emanate from the zero-corporate tax crowd.
Therefore, why would either Obama or Boehner bite the hand that feeds them?
Oh well, back to the drawing board.
Bill Tatro, CFP, is host of It’s All About Money heard daily in Phoenix and Rochester, NY. He is author of One Hour Survival Guide for the Downsized. With a 40-year career in the financial industry he is a featured columnist on TownhallFinance.com. In 2011, Tatro launched MacroProfit, a subscription newsletter from his blog BillTatro.com. Follow Bill on Twitter @TatroTweets.Solution For Fiscal Cliff Standoff by DBO Team