On December 31 of this year, the Bush Tax Cuts will expire, and the spending cuts under the Budget Control Act of 2011 will begin. This is what is known as the fiscal cliff. At the same time, total US public debt totals more than $16 trillion. As the president and congress work to mitigate the damage of the fiscal cliff, any increase in revenue or decrease in spending is important.
US corporations are currently the most most profitable they have ever been, making more per dollar in sales than any time in history. The current corporate tax code is outdated, inefficient, and unfair to the rest of tax-paying society. Through loopholes in tax deductions, many of America’s biggest corporations are paying next to nothing in taxes. At the same time, the US tax code encourages corporations to funnel their profits out of the country into tax shelters. As foreign companies invest abroad, economic growth in America stagnent.
It is time to reform US corporate taxation. By removing loopholes, the changes can benefit businesses, government, and society.