- There has been a huge shrinking of the US corporate tax base. In the 1950’s corporations accounted for 30% of the US tax base. Now, with the highest corporate tax rate in the world at 35%, the corporate US tax base dwindled to 11%. Other countries like Canada, with a gross corporate tax rate of 15%, have benefited drastically from the high US corporate rate. It seems that raising taxes to non-competitive levels causes companies to go elsewhere, taking high paying jobs with themth them.Reuters examines the corporate tax rate proposals by the 3 remaining mainstream candidates as follows:
- Donald Trump – Reduce the corporate tax rate to a competitive 15% but close many of the corporate tax foreign tax inversion loopholes.
- Hillary Clinton – Also reduce the corporate tax rate (the rate varies but most commonly around 25%). Also close foreign tax inversion loopholes. Then provide a temporary amnesty plan that allows corporations to reintroduce money kept overseas back into the US economy.
- Bernie Sanders – Does not provide a coherent consistent plan other than to “drastically increase the corporate tax rate.”
- Finally five individuals have been arrested for fraud related to IRS phone scams. These include complaints in Northern Texas. Treasury Inspector General for Tax Administration (TIGTA), announced the arrests of five individuals based upon criminal complaints alleging they were involved in schemes to impersonate Internal Revenue Service (IRS) agents and use the threat of arrest to obtain money from victims by falsely representing that the victims owed back taxes or other fees.It is unlikely these five individuals are responsible for all of the calls and we expect these calls will continue and we recommend you hang up on these idiots immediately. DO NOT GIVE THEM ANY OF YOUR PERSONAL INFORMATION.
- Every communication from the IRS for the last few years has been about the agency not having enough money to do their jobs and their budget woes is the reason for providing horrible service. Now watch out, without $1 in additional funding they hire 700 new enforcement staff. Why? Rep. Jason Chaffetz (R-UT), chairman of the House Oversight and Government Reform Committee, has written to IRS Commissioner John Koskinen requesting details of where the agency had found the fund…s to hire up to 700 new enforcement staff. Mr Koskinen’s announcement came last week; at the time he said the money will be freed up by retirements, attrition, and non-specific budget “efficiencies”. In the letter Mr Chaffetz, who launched a campaign last October to impeach the agency chief, wrote: “The inescapable conclusion is that your testimony to Congress was inaccurate, reflecting either an attempt to exaggerate IRS’s budget needs or a management failure in understanding the needs of your organization”.