Although tax reform has been in the national spotlight lately—between the Obama team's April Buffett Rule push and the Republican primary candidates' proposals (remember 9-9-9?)—don't expect corporate tax reform to be a legislative priority in the near future. “From the beginning, we acknowledged that this would be a heavy lift and take time,” an official from the Treasury Department said.
One of the big reasons corporate tax reform may be a long shot is the daunting policy docket shaping up for the end of the year, including dealing with the Bush tax cuts. Also, lowering the statutory tax rate to 28 percent—which Obama's proposal suggests, along with closing the many tax loopholes—would require cutting out $12 billion annually in corporate tax breaks. Add the fractious political climate in Congress, and corporate tax reform may have to stay in the campaign speech arena for a long time.
- Obama’s Not-So-Hot Date With Wall Street The New York Times Magazine
- Tax Receipts Not Changing Deadline on $16.4T Debt Limit The Hill
- Jobless rise adds to eurozone concerns The Financial Times
- Jobless Claims in U.S. Decline More Than Forecast Bloomberg
Chart of the Day
In 2008, $43.6 million of $61 million raised for the Democratic National Convention came from corporations and lobbyists. This time around, they've banned those types of contributions, and are $20 million short of their scaled-back fundraising goal.
Reason to Get Out of Bed in the Morning