Corporate Taxes


Corporate Income Taxes

 

Overview:

Corporate income taxes were $242 billion in FY2012 and made up 10% of all tax receipts of the Federal Government in that year. They were $274 billion in FY2013 and made up 10% of the total receipts.

 

The source of these figures was from The Office of Management and Budget website, the historical figures page. The FY2013 figures from OMB are now finalized and the FY2014 are estimates and will not be finalized for some time.  

 

Considerations:

To raise additional income, there has been discussion of eliminating some deductions and credits but the concentration in Washington has been upon the Individual Income Tax arena. In addition, both the President and the Congress proposed to reduce the US Corporate Income Tax Rate to make it more competitive with other countries. Currently, the US Corporate Income Tax Rate is the highest of the leading industrialized countries. In essence, between the overall rate decrease proposal combined with the reduction or elimination of deductions and credits, the combination is budget neutral.

 

Proposals:

  1. Simpson Bowles Plan
  2. Domenici Rivlin Plan
  3. Heritage Foundation Plan
  4. Cato Institute Plan
  5. United We Stand Plan as below

 

United We Stand Plan:

  1. Cut the rate for corporations to 20%
  2. Combine this overall rate cut with a reduction in credits and deductions so overall the plan is revenue neutral.