Politicians are bickering once again about corporate tax cuts and job creation. Reuters recently published a story outlining the President’s latest proposal, a “grand bargain for middle-class jobs” that cuts corporate tax rates and at the same time funds projects aimed at creating jobs with revenue generated by a business tax overhaul.
The President’s effort to jumpstart job creation was an attempt at compromise, combining the corporate tax cuts pushed by Republicans with the new spending on infrastructure projects and education that Democrats believe to be a priority. According to the proposal, the corporate tax rate would drop from 35 percent to 28 percent and would give manufacturers a preferred rate of 25 percent. The proposal also attempts to generate revenue by slowing down corporate tax evasion with a minimum tax on foreign earnings.
However, Republicans are expected to oppose the effort, with Senate Republican Leader Mitch McConnell immediately disparaging the proposal and Michael Steel, spokesman of House Speaker John Boehner, criticizing it before it was even announced.
Looks like not much is changing in Washington, but we will keep you updated as new developments occur.