Central to the debate over health care reform is the question: “How do we pay for it?” One idea we’ve discussed at Clearly is the proposal to enact a surtax on the incomes of the wealthiest 1% of households.
Which brings us the question of corporate taxation. Over the past 30 years we’ve seen how, through the strategic use of campaign contributions and well-paid Washington lobbyists, big corporations have extracted huge tax breaks and tax loopholes out of Congress. Many corporations end up paying no taxes at all. A 2007 Treasury Department report estimated that all these corporate tax breaks will reduce federal revenues by more than $1.2 trillion over the next 10 years. Sounds like money that could help plug those looming budget deficits.
Defenders of favorable tax treatment for corporations insist that tax breaks mean job creation. Ironically, corporations have even gotten tax breaks for shipping American jobs overseas. During the same period, middle class incomes have stagnated and American jobs have become less secure than ever before.
Should we restore fairness to the tax code by making corporations pay their fair share of taxes?
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