President Obama’s Corporate Tax Proposal: Anti-Small Business, Anti-Competitive, Ineffective

Top Points

  • President Obama’s corporate tax reform proposal still leaves U.S. businesses with one of the highest combined corporate tax rates in the world.
  • Many small business owners would pay far higher tax rates than large corporations under President Obama’s tax proposals.
  • President Obama’s corporate tax proposal would put U.S.-based companies at a competitive disadvantage with a new global minimum tax.
  • Republicans support comprehensive tax reform to fuel economic growth, which includes reforms to individual, corporate, and international tax policies.

Anti-Small Business

  • President Obama’s recent budget proposal raises individual tax rates on small business owners to nearly 40 percent, while his corporate tax reform proposal would lower the statutory corporate rate to 28 percent.
  • President Obama’s budget proposal already includes $1.9 trillion in new taxes, which will hurt small businesses and job creators.

Anti-Competitive

  • The Obama administration is proposing a new global minimum tax on U.S. businesses and corporations, which would make the U.S. less competitive at retaining and attracting large businesses to headquarter in this country.
  • This bad tax policy would push U.S. businesses to relocate overseas.

Ineffective

  • American businesses and corporations pay one of the highest tax rates in the world, and President Obama’s corporate tax reform plan offers little relief.
  • Even with lowering the corporate tax rate to 28 percent, the U.S. would still have a combined state and federal rate of 32.2 percent, which is still one of the highest in the world.

Republicans Support Comprehensive Tax Reform

  • Republicans support comprehensive tax reform to fuel economic growth, which includes reforms to individual, corporate, and international tax policies.
  • A fairer, flatter, simpler tax system would create a better overall environment for job creation and economic growth.