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Reality Check on Corporate Tax Reform

November 3, 2011

Republicans on the House Ways and Means Committee say they are trying to produce a corporate tax reform proposal that cuts the rate from 35 percent to 25 percent but raises as much revenue as the current system by eliminating or reducing tax expenditures.

House Punts on Tax Cheating by Government Contractors

October 27, 2011

The House voted today to repeal a law designed to fight tax cheating by private firms operating under government contracts. Now it’s up to the Senate to decide whether to go along with the House and ignore this problem, which increases deficits and forces honest taxpayers to pay for more than their fair share of government.

What a “Territorial” Tax System Would Mean, in One Chart

October 25, 2011

BNA reports today that House Ways and Means Committee Chairman Dave Camp (R-MI) will soon propose a corporate tax plan that includes a “territorial” system of international taxation. The business community is lobbying Congress aggressively for it, claiming it would help the economy, and many lawmakers may not fully understand what a territorial system would really mean.

Here’s what would happen:

Corporate Tax Holiday Would Be a Costly Mistake

October 24, 2011

“The evidence is there,” the New York Times writes in an editorial today. “A corporate tax holiday won’t create more jobs. What it will do is raise the deficit.”

A well-funded corporate lobbying campaign is pushing Congress to allow multinational corporations to bring profits held overseas back to the United States at a temporary, bargain-basement tax rate.

Senator Levin Provides More Required Repatriation Tax Holiday Reading

October 12, 2011

Amidst a massive campaign to convince policymakers to grant U.S. corporations a second repatriation tax holiday, allowing them to pay sharply reduced taxes on overseas profits that they bring back to the United States, Chairman Levin’s majority staff on the Senate’s Permanent Subcommittee on Investigations has issued a timely analysis of how and why the first holiday of 2004 was such a complete failure.

Latest Corporate Tax Repatriation Proposal Fails the Test of Sound Policy

October 6, 2011

Senators Kay Hagan (D-NC) and John McCain (R-AZ) announced a proposal today to allow multinational corporations to bring home (or “repatriate”) earnings held overseas, for a temporary period of time, at a tax rate of just 8.75 percent — a fraction of the regular 35 percent corporate tax rate. They, and the massive corporate lobbying campaign that’s pushing for a corporate repatriation holiday, claim it would create jobs and boost the economy as firms invest the repatriated profits in the United States. The reality, however, is that the new proposal suffers from the same serious flaws as other “repatriation” proposals.

Millionaire Myths, Indeed

September 26, 2011

The Washington Post’s “Five Myths About Millionaires” piece yesterday by John Steele Gordon did more to perpetuate myths than dispel them. Below are corrections to each of his five points:

The Case for the Buffett Rule in One Chart

September 20, 2011

This chart, based on data from the Tax Policy Center (TPC), sums up the case for the President’s proposed “Buffett Rule”: a significant group of very wealthy people pay a smaller share of their incomes in federal income and payroll taxes than large swaths of the middle class.

To Help the Economy, First Don’t Hurt It

September 7, 2011

American workers are getting a $120 billion boost in their take-home pay this year from the payroll tax cut that President Obama and Congress enacted last December. Extending that tax cut for another year is a first, essential step to help the struggling economy, as our new report explains.

New Study Claiming Repatriation Tax Holiday Would Raise, Not Cost, Revenue is Flawed

August 30, 2011

A New Democrat Network (NDN) study claims a dividend repatriation tax holiday (allowing multinational firms to return offshore earnings to the United States at a hugely discounted tax rate) would raise $8.7 billion in revenues over ten years – contrary to the Joint Committee on Taxation's (JCT) estimate that it would cost $78.7 billion over ten years – but NDN’s study rests on several flawed assumptions.