Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

Corporate Income Tax Policy Deeply Flawed

Author: James F. McDonough

Date: May 12, 2015

Key Contacts

Back

U.S. corporate income tax policy is currently riddled with problems and in dire need of reform, Treasury Department official Mark Mazur stated during a lecture focused on current issues in taxation.

Mazur, an assistant secretary for tax policy, emphasized the U.S. corporate income tax policy rate is high relative to other countries, and that this situation makes it easier for companies to do business overseas, according to Accounting Today. 

Corporate tax landscape has changed

While speaking at the 15th Annual NYU/KPMG Tax Lecture Series, he spoke to how the landscape for business taxes has changed over the years, the media outlet reported. Following the Tax Reform Act of 1986, the U.S. corporate income tax rate – which was 34 percent at the time – was one of the lower rates for industrialized economies.

However, Mazur noted that while rates fell in many countries, they climbed slightly in the world’s largest economy, reaching 35 percent, according to the news source. Because of this, the government official pointed out that U.S. taxes have become high relative to the nation’s peers.

Corporate Income Tax Policy reform proposals

The high corporate income tax rate levied by the U.S. has taken front stage in policy discussions, and several prominent lawmakers have already proposed new approaches. President Barack Obama outlined several different changes he would enact during the State of the Union address, which include cutting the corporate income tax’s top rate to 28 percent, making depreciation lives longer and levying a minimum tax on all profits earned overseas.

Sens. Marco Rubio (R-Florida) and Mike Lee (R-Utah) also offered their own proposal, which would reduce tax burdens for companies by allowing them to take part in full expensing and also lowering their top income tax rate to 25 percent. Rep. Dave Camp (R-Michigan) has presented a plan as well, which would make the same reduction in the corporate income tax to 25 percent but also scrap the Alternative Minimum Tax for corporations and pass-through entities.

Urgent need for change

Many different options for reform are on the table, and Mazur stressed the urgency of taking things in a new direction, the media outlet reported. Currently, the system of corporate taxes is “inefficient,” “overly complex” and having too many loopholes. Mazur asserted that while our system of corporate taxes is supposed to be world class, it no longer operates this way, and reform is needed to return policy to this state.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Dissolving Your Business: Essential Legal Steps to Protect Your Interests post image

Dissolving Your Business: Essential Legal Steps to Protect Your Interests

If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]

Author: Christopher D. Warren

Link to post with title - "Dissolving Your Business: Essential Legal Steps to Protect Your Interests"
The Role of Corporate Restructuring in Mergers & Acquisitions post image

The Role of Corporate Restructuring in Mergers & Acquisitions

Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]

Author: Dan Brecher

Link to post with title - "The Role of Corporate Restructuring in Mergers & Acquisitions"
Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public post image

Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public

Cryptocurrency intimidates most people. The reason is straightforward. People fear what they do not understand. When confusion sets in, the common reaction is either to ignore the subject entirely or to mistrust it. For years, that is exactly how most of the public and even many in law enforcement treated cryptocurrency. However, such apprehension changed […]

Author: Bryce S. Robins

Link to post with title - "Crypto Enforcement: A Former Prosecutor’s Warning to Criminals and the Public"
Understanding Chattel Paper: A Key Component in Secured Transactions post image

Understanding Chattel Paper: A Key Component in Secured Transactions

Using chattel paper to obtain a security interest in personal property is a powerful tool. It can ensure lenders have a legal claim on collateral ranging from inventory to intellectual property. To reduce risk and protect your legal rights, businesses and lenders should understand the legal framework. This framework governs the creation, sale, and enforcement […]

Author: Dan Brecher

Link to post with title - "Understanding Chattel Paper: A Key Component in Secured Transactions"
Crypto Compliance: A Comprehensive Guide post image

Crypto Compliance: A Comprehensive Guide

For years, digital assets operated in a legal gray area, a frontier where innovation outpaced the reach of regulators and law enforcement. In this early “Wild West” phase of finance, crypto startups thrived under minimal oversight. That era, however, is coming to an end. The importance of crypto compliance has become paramount as cryptocurrency has […]

Author: Bryce S. Robins

Link to post with title - "Crypto Compliance: A Comprehensive Guide"
Supreme Court and Title VII: Implications for Reverse Discrimination post image

Supreme Court and Title VII: Implications for Reverse Discrimination

Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]

Author: Matthew F. Mimnaugh

Link to post with title - "Supreme Court and Title VII: Implications for Reverse Discrimination"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!