The Case for Corporate Tax Reform
by Daniel B. Maffei and Ryan McConaghy
Third Way Policy Memo
August 30, 2011
High rates, low revenues, cash kept overseas, and thousands of pages of complexities—nothing about our corporate tax system seems to be working. Our corporate tax code is a relic, last substantially reformed in 1986—before the Internet, before the Euro, and before capitalist China. Many of America’s competitor nations have revamped their codes, but not the United States. Reform of our corporate code has been restrained in part by concerns that lowering rates would benefit only multinational corporations while doing little to create decent jobs or raise revenues. However, it is increasingly clear that modernizing our corporate code is a competitive necessity. Done right, corporate tax reform can help businesses create jobs and wealth here, and generate revenues to address the deficit and fund national priorities. In this paper, we lay out the seven reasons why America should embrace corporate tax reform that lowers rates, changes our taxation of international profits, and reduces complexity in the tax code.
Read the article here.