Posted on 12/02/2011 3:31:36 PM PST by afraidfortherepublic
Whether you’ve been watching every debate or are waiting until the field narrows, the 2012 presidential election push has gotten underway. So what will the impact be on your business? No denying, the economy will be a hot topic this go-around. And tax reform remains an integral part of any strategy to right the ship. One specific target? Corporate taxes.
With good reason: The United States is well above-average in its corporate tax rates. While the international average falls around 20%, we blow that away.
But maybe not for long.
The candidates vying for the Republican presidential nomination plan to change that. Each has pushed for a flat tax approach to even things out.
Election Day will be here before we know it. Let’s take a look at what each major candidate is currently proposing to see how it would translate to your business.
Same structure, different rates
The fact that there should be a flat tax seems to be something all the top contenders in this race agree upon. Depending on who gets the Republican nod, here’s what your company would be looking at:
» Romney: A corporate tax rate of 25% is key to his 59-point jobs plan.
» Perry: A 20% corporate tax rate on domestic earnings. However, Perry wouldn’t dump the existing graduated rate system. For the time being, you’d get to choose which you went with.
» Cain: A 9% corporate tax rate on corporate net income, under his famous 9-9-9 Plan. You’d kiss payroll taxes goodbye under Cain, too. However, you’d be saddled with a nationwide flat 9% sales tax rate.
» Gingrich: A 12.5% corporate tax rate.
» Bachmann: A 0%? Bachmann has said she’s “open” to the idea of eliminate corporate taxes all together, just like Sarah Palin was. Though she has yet to come out and officially announce this as her plan.
Only time will tell which person (and rate) will triumph. We’ll keep covering the candidates and their plans for your business. Stay tuned.
I think we should eliminate the corporate tax all together.
Its a hard sell though. Neither party wants to remove that incentive for corporate lobbyists to pay the bribes.
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