Is Business Tax Reform Possible?
President Obama and congressional Republicans say they want to lower our corporate tax rate, which is higher than the rates of any other developed country. But there’s an obstacle: Small businesses generally file under the individual tax code rather than the corporate one, and they just saw their taxes go up at the start of the year. A tax reform that only helps corporations–and only some corporations at that–won’t fly politically.
Most Republicans understand that, and say they want to reform the corporate tax code and the individual code simultaneously–but that too seems unlikely.
In my Bloomberg View column, I talk about an idea from Rep. Devin Nunes to move forward. It’s to tax all businesses the same way, regardless of their organizational form.