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….
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