As part of his new tax plan, the president has proposed ending the “step-up” in tax basis for inherited assets, and, furthermore, requiring the capital gains tax to be paid at death rather than when an heir later sells...
- Plain Dealer Cites Tax Foundation on Corporate Tax Rates
Plain Dealer Cites Tax Foundation on Corporate Tax Rates
By Robert Higgs
A penny saved? Jordan, a Republican from Urbana and chairman of the Republican Study Committee in the House, misspoke on the number, but his underlying point remains.
"President Obama's recent plan to cut $100 million of waste within his administration won't actually save money because he's going to spend it elsewhere."
In his announcement, Obama said federal agencies would be smarter about how they spend money internally. This was the latest step in an ongoing White House "Campaign to Cut Waste," which more broadly includes such steps as cutting Medicare payment errors, selling unneeded federal buildings and using the Internet rather than government printing presses and paper to distribute documents such as the Federal Register, which many people read online.
Jordan, too, wants to cut government waste, although his view of government waste is more sweeping than that of many Democrats. News reports support his contention, though, that the money will be diverted elsewhere. He called it "deficit relocation, not deficit reduction."
So no savings then?
A report from the Washington-based Tax Foundation supported Portman's claim, if viewed in terms of statutory rates.
"The United States currently lays claim to the second-highest statutory corporate income tax rate in the developed world. At 39.2 percent, the rate is only 0.35 percentage points behind OECD-leading Japan," it said.
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