What is Wrong ?

To add more balance to the debate over corporate tax I think it is important for me to also identify some of the problems that the Obama regime has identifed with the current system. The biggest problem that the Obama has with the corporate tax is our various tax loopholes that allow American corporations to shelter tax revenues. Currently the tax loopholes set up incentive to outsource labor and operations to overseas markets to compensate for heavy domestic rate and a dual tax system on foreign and domestic profits. These loopholes give our Companies a chance to compete in the international markets, but they also allow corporations to shelter much of their revenue in overseas accounts that cannot be touch by the U.S. treasury. Even more upsetting is the amount of corporate tax that is paid to foreign governments is almost six times as much tax revenues collected by the U.S.
The labor forces in countries like India and China are more specialized and cheaper than labor forces in America. Even if the corporate rate in America was lowered to a comparable rate we would have a hard time to keep with more advantageous foreign job markets. As a solution to our problems facing outsourcing and a decreasing GDP we need to start investing in creating a highly specialized work force as well a more corporate tax policy. Our companies will remain thriving in global markets but until we can actually collect on the profits they are earning it doesn’t matter.