It’s the return of Fix the Tax Code Friday!
Earlier this month, executives from Boeing Co., Sears Holding Management Corp., Emerson Electric Co. and Perrigo Co., told members of Congress that they would will be willing to give up tax breaks in exchange for a lower corporate tax rate. This is consistent with a recent survey of top officials at U.S. companies which found that more than 60% of those corporate taxpayers would elect to keep their existing tax breaks unless the corporate rate was reduced to 25%. Interestingly, 17% of those surveyed responded that they wanted to keep their tax breaks no matter how low the rate dropped (GE, perhaps?).
The rationale, of course, offered for the shift is simplicity and constancy. I agree that a simple tax system that offers consistency and certainty to taxpayers makes sense in the abstract. But as I’ve said before that when they say they want a simple tax system, what they really mean is that they want fewer taxes. Nobody really wants to give up their tax breaks (home mortgage interest deduction, anyone?).
But maybe I’m wrong about this.
So today’s “Fix the Tax Code Friday” question is:
Like many U.S. corporations, would you be willing to give up your tax breaks – including deductions, exemptions and credits – for a lower tax rate? And if so, how long would the rate have to be?
