The Treasury Department released the President's Framework for Business Tax Reform on February 22, 2012. The press release states, "Treasury released the President's framework for reforming the U.S. business tax system, which would enhance American competitiveness by simplifying the tax code and eliminating dozens of tax loopholes and subsidies, incentivizing job creation and investment here at home and lowering the business rate while broadening the tax base."
As the White House releases the 2013 budget, corporate taxation could be an issue where Congress can find compromise in fiscal policy. Both parties agree the current corporate tax regime is inefficient and often disadvantages U.S. businesses globally.
This report focuses on the global issues relating to tax rate differentials between the United States and other countries. It provides tax rate comparisons; discusses policy implications, including the effect of a corporate rate cut on revenue, output, and national welfare; and discusses the outlook for and consequences of a revenue neutral corporate tax reform.
American companies are often paying far less than the official federal corporate tax rate of 35 percent, David Leonhardt of the New York Times writes in this article. The official rate is higher than in almost any other country, which forces companies to devote enormous time and effort to finding loopholes.
Due to an increasing U.S. Federal government deficit many groups now argue for the institution of a national value-added tax (VAT) to increase government revenue. James M. Bickley of the Congressional Research Service examines the plausibility of enacting such a plan.
Amity Shlaes argues that the payroll tax cut for 2011 jeopardizes U.S. growth in the longer run. When a showcase contract like Social Security is compromised, citizens' faith in other contracts, public or private, begins to fray and their willingness to invest or hire weakens.
The Council on Foreign Relations' David Rockefeller Studies Program—CFR's "think tank"—is home to more than seventy full-time, adjunct, and visiting scholars and practitioners (called "fellows"). Their expertise covers the world's major regions as well as the critical issues shaping today's global agenda. Download the printable CFR Experts Guide.