20% Corp Tax Is Okay – But Let’s Fix This Corp Subsidy Issue Now Too
Congress is about to reform the tax laws and set a permanent rate of 20% for corporations. At the same time, it is not offering much to taxpayers and even eliminating or reducing a number of deductions like property taxes, mortgage interest and student loan interest.
I agree that we need a decent rate for our corporations in order for the United States be competitive. I would suggest one minor tweak to the tax code, in order to prevent double-dipping by corporations. Let’s use this tax bill to totally eliminate ALL other corporate subsidies and tax incentives.
I am speaking particularly about tax breaks and subsidies that stopped making sense years ago. Things like ethanol, and sugar, are industries that it no longer makes sense to subsidize. Ethanol was promoted at a time when we did not have enough oil. Now we are up to our hips in shale oil, and up to our ears in natural gas. Times have changed.
Sugar has been subsidized directly or indirectly since 1934. It costs taxpayers billions and is damaging to the environment. Numerous groups on both the left and right sides of the aisle have recommended it be terminated.**
There have been dozens of other special incentives granted to various special interest groups to increase competitiveness. Now that we are getting a 20% corporate tax rate, ALL those incentives, subsidies and tax breaks should be permanently eliminated. I am including big pharma, and the oil and gas industry as well. The average retailer or SMB company gets no such tax breaks. And it’s not fair that small to medium businesses pick up the tax bill for giant conglomerates.
Please reach out to your Congresspeople and tell them to its time to cut out the nonsense. The American people have always believed in fairness – and will swallow a bitter pill like more taxes, if they feel they are being treated fairly. A 20% corporate rate is okay, but end all special breaks and subsidies now.