Accounting News

Monday, August 13, 2007
Simplified Corporate Tax System?

Henry Paulson, Treasury Secretary has spoken several times that he believes the complexity of corporate tax rates are harming the competitiveness of US companies in world markets. Paulson said the corporate tax code "includes ad hoc policies and preferences that result in a narrow tax base and create distortions that divert capital from its most efficient use."

Paulson has also spoken in the past about a need to reduce the overall rate of taxes paid by businesses. However, it doesn't appear that the political climate will make that a reality anytime in the future. People always think that corporate taxes are paid by big companies and not just passed along to the consumer in the form of higher prices. As a result it makes raising the corporate tax rate a popular move when in comes time to raise for money for the government.