The U.S. corporate-tax rate is higher than that of any other developed country. We have kept it at 35 percent even as other countries have reduced theirs. Republicans, unsurprisingly, want to cut the rate; most of them think 25 percent is the right target. President Barack Obama has suggested that eliminating loopholes would enable a reduction to 28 percent, Bloomberg reports.
A lower rate would lead to more investment, and thus higher wages, in the U.S. But most businesses, especially small ones, don’t pay corporate taxes. They file under the individual income-tax code, partly because it treats investment better than the corporate code does. These businesses have no stake in seeing the corporate-tax rate fall -- especially since their own taxes just rose at the start of the year, when the Bush tax cuts on high earners expired….