Sunday, November 16, 2008
Bloomberg: Rangel Plans Push to Cut Top Corporate Tax Rate to 28 Percent, by Ryan J. Donmoyer & Peter Cook
New York Representative Charles Rangel said he's revising his tax overhaul proposal to reduce U.S. corporate tax rates to 28%, down from the current rate of 35%.
Rangel ... said he's changing the "mother of all tax reform" he unveiled in September 2007 to accommodate President-elect Barack Obama's agenda. That earlier plan would have set the corporate tax rate at 30.5%. Rangel is the chairman of the House Ways and Means Committee, which oversees tax policy. ...
Only Japan has a higher marginal corporate tax rate among developed nations, the Treasury Department said last year. When state taxes are factored in, U.S. corporations pay about 39% on their last dollar of profit.
Obama has said that the effective tax rate paid by U.S. companies is much lower once they claim deductions, credits, and other adjustments to taxable income. In 2006, for example, American companies paid an average effective tax rate of about 23.7%, according to a study by Ernst & Young.