A Solution

In my last blog I touched on the problems of Obama’s new tax proposal that closes tax loopholes that help American Business earn higher profits and stay competitive. These loopholes are put in place to deter business from outsourcing production overseas. The problem is American Corporations will not run their companies in an unfriendly tax environment, such as America with the second highest corporate rate the world. The only way the Obama’s new proposal will work is if the current corporate tax rate is cut in half to allow our corporations to compete internationally. Also tax incentives for corporations that operate domestically, already in Obama’s proposal, will attract more businesses back to America.
Offering a more competitive business environment will bring home and start up more business operations in the U.S. Unemployment in our cities will go down, as more jobs will be offered domestically. As we produce more in the U.S. we will decrease our imports and increase our exports, which is crucial in helping the economy. Tax revenues previously paid to foreign governments, that harbor American corporations, will be incorporated into America’s tax revenue. Although corporations will be tax at lower rates than before, the government will still generate more tax revenue. Seeing as currently an overwhelming majority of American Corporation’s taxes on profits go to foreign countries. Simply closing loopholes in our tax code will not help the economy. Our government has to offer a competitive business environment with lower corporate tax rates as an attractive alternative to foreign markets for U.S. Companies.