UMBC political science professor Thomas Schaller’s latest Baltimore Sun column offers a primer on corporate tax policy. Although the top nominal corporate tax rate in the U.S. is 35%, the Wall Street Journal reports the average, effective corporate tax rate for FY 2011 was 12.1%. “So we are not taxing our corporations to death,” Schaller argues, “Nor are we funding our government on the back of corporations.”
Schaller writes, “To their credit, several of the Republican presidential candidates and President Obama advocate lowering the nominal rate in exchange for eliminating various tax loopholes and exemptions.” This suggests an opportunity for bipartisan compromise, Schaller continues, until we consider the influence of politically powerful companies and trade associations lobbying for lower effective tax rates.
Tags: CAHSS
