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Tax Reform That Destroys?

 

Tax Reform That Destroys?

Treasury Secretary Tim Geithner on Wednesday unveiled the Obama administration's tax reform plan which calls for lowering the corporate rate from 35 to 28 percent while closing loopholes elsewhere. 

Geithner said the current code is bad for business, claiming the overhaul would make the system more globally competitive. 

Officials have said the reforms would actually raise money, despite the decrease in the rate, by making changes to provisions which Geithner called "fundamentally unfair." 

Manufacturers would receive incentives so that their effective tax rate would be 25 percent. But corporations with overseas operations would also face a minimum tax on their foreign earnings, while taxes on oil and gas companies would reportedly see their taxes go up while losing many large deductions and subsidies. 

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  In the light of the GOP discussions on tax reform, the Obama Adminstration has released it's own tax reform plan which includes lowering the corporate tax rate. The probelm with President Obama's tax reform plan is that the largest American corporations, especially the oil industry, will pay increased taxes. In my opinion, President Obama wants to destroy the oil industry and subsidize the so called "green industry" which he is accomplishing under the guise of lowering the corporate tax rate. When The President talks about increased American manufacturing he means for "green" companies, not coal, gas or oil companies. Hopefully informed Americans will see through the duplicity of the Obama Tax Reform plan. Right now wind, solar and lithium propelled cars are a waste of money. America and the world in general is still dependent on coal, gas and oil. If left alone the coal, gas and oil comapnies will lead the way in the change to alternative energy sources because these industries realize that fossil fuels will eventually run out, something called "supply and demand" in the Free market economy composed of businesses with a profit motive. Tax reform shouldn't selectively destroy industries.
 

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