The administration's plan would decrease the statutory tax rate, while at the same time increasing the effective rate for many firms by eliminating deductions and closing loopholes that allow firms to reduce their effective rates so far below the rate on the books. As Bernstein points out, these include "accelerated depreciation, interest deductibility, the ability to pass corporate capital gains over to the individual side of the code (where it gets favorable treatment), and a bunch of international loopholes, like deferral -- the ability to avoid U.S. taxation by holding multinational profits overseas."
The real question is: what is the bottom line corporate tax rate after all loopholes are included?
The plan is probably a wash in terms of stimulating the economy.
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http://www.cbsnews.com/8301-502583_162-57382741/corporate-tax-cut-good-idea-but-wont-stimulate-economy/
The real question is: what is the bottom line corporate tax rate after all loopholes are included?
The plan is probably a wash in terms of stimulating the economy.
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