WSJ Analysis: Bipartisan agreement that corporate tax code needs overhaul
From NAM’s Manufacturing Economy Daily blog
A Wall Street Journal analysis says the latest move by the Obama administration to prevent corporate inversions highlights a bipartisan issue, the need to overhaul the broken US corporate tax code.
The Journal says the Obama administration and congressional Republicans agree on reducing the tax rate, making it harder for companies to shift profits abroad and cutting incentives for companies to stockpile profits overseas.
NAM Vice President of Domestic Economic Policy Dorothy Coleman commented, “The further you drill down, the more difficult it becomes to keep everyone on the same page,” adding, “People recognize that we have a dysfunctional tax system and something needs to be done about it.”
However, the Journal says that beyond the recognition that reform is needed, Democrats and Republicans are unable to agree on the best means of addressing the issue.
In a blog that touches on various business related news, theBusiness Journals (4/6, Hoover) states the NAM’s argument that he new inversion rule from the Treasure Department “make[s] a bad U.S. tax system ‘significantly worse’ by injecting more uncertainty into it.”
The article notes that Coleman wrote the US must overhaul the US corporate tax code to stop inversions.
Editorials Critical Of Added Regulations. A Wall Street Journal (4/7, A14, Subscription Publication) editorial is critical of the rules imposed by the Obama administration, arguing they represent the politicization of business regulation by the White House, which has led to regulations that slow growth and meager wage gains.
Bloomberg View (4/6)says in an editorial that a “sensible tax system” would “eliminate the incentives both for inversions and for parking income abroad.” They explain that “actions like the administration’s shouldn’t be confused with reform.” The editors add that “they make the code even more complicated when it desperately needs to be simpler.”
Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri.