Obama's 'Hail Mary' Tax Reform Plan
Originally published on Fox Business.
The Obama Administration on Wednesday, in an election-year Hail Mary gesture, is proposing a sweeping reform of the corporate tax code that would reduce the tax rate for big businesses to 28% from the current 35% rate, one of the highest among the industrial nations.
The administration says it will make up the difference in lost tax revenues by closing loopholes used by big corporations to reduce their tax burdens.
With a presidential and Congressional elections in the fall, the likelihood of a piece of significant legislation like this making its way into law is almost non-existent. Congress is as polarized as it's been in decades, which poses another significant stumbling block for the administration.
Besides, powerful corporate lobbyists whose clients stand to lose by changes to the existing tax code are sure to tie up the proposal were it to be introduced as a bill in some form or other. But even that seems unlikely.
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