by Chriss Street, Testosterone Pit.com:
When Presidents Nixon and Clinton got embroiled in serious scandals they both politically triangulated in favor of legislation considered vital by their opponents. Nixon passed the Clean Air Act and founded the Environmental Protection Agency. Clinton ended “Welfare as we know it” by passing the Personal Responsibility and Work Opportunity Act. With President Obama facing a blizzard of expanding scandals, I expect he is prepared to support conservative legislation that would positively reform America’s corporate income tax and to spur a renaissance in American manufacturing.
The average global corporate income tax rate is 25%. But since President Reagan cut tax rates and eliminated deductions to simplify the tax code in 1984, multi-national corporations’ lobbying of Congress resulted in much higher tax rates and new loopholes and deductions that expanded U.S. Tax Code from 26,300 to 73,608 pages. Companies whose business is solely in the U.S. — food chains, retailers, railroads, and truckers — are exposed to the full 35% corporate income tax rate (5% more counting state and local taxes), whereas companies with extensive foreign operations or transferrable intellectual property such as pharmaceutical patents and software limit the U.S. corporate taxes they actually pay to an average rate of 26%.
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