We as a country have the highest rate of corporate tax in the industrialized world, at a rate of 35 percent, and that is wrong. Having such a high rate does not encourage companies to come over here and work with us. It is something that must be changed ASAP.
The nominal tax rate is a very high 35%, but few companies pay that much by mastering the wildly complex system of exemptions. That results in a lot of money wasted in tax preparation, otherwise poor investments being made for tax reasons, and foreign companies being scared off from investing in the US because of the need to muster an army of lawyers. A flat tax would solve these problems. Dividends should be tax exempt for corporations and only taxed as income to the individual. Now they are taxed twice.
If the United States issued a new corporate tax reform and lowered the taxes on corporate companies, it could lead to less outsourcing and allow for more jobs to be opened up here in the United States. Our government is in serious need of reform overall, but as a country we need to help the American people to become less dependent on government assistance. By oping up more employment opportunities, less families will need to seek government assistance. This will help us to get our economy back to where it needs to be.
I do not believe that the U.S. Needs a corporate tax reform right now. I think the biggest issue is that higher income people pay taxes at a higher percentage. They should look into making a flat tax in which every one is taxed at the same percentage of their income. That is the only fair system.