Last Updated Feb 15, 2011 2:13 PM EST Business groups are angry that President Obama didn't detail any plans for corporate tax reform in his budget yesterday. But the real reason they're upset is that the White House has played them louder than a drum. While Obama has made general noises about reducing the tax burden on U.S. companies, these overtures have been awfully short on specifics. And for good reason. The White House knows very well that with the 2012 election approaching, slashing the top corporate tax rate of 35 percent and letting multinationals repatriate overseas earnings at a discount would be political suicide. It's never going to happen, at least not in Obama's first term. Sure, business taxes can fall -- so long as they rise, too Martin Sullivan, contributing editor at Tax Analysts and a former Treasury Department economist told me:What the administration has done is to seemingly make a major concession by advocating a lower corporate tax rate. But they've done that … [Read more...] about Sorry, CEOs: Obama Won’t Cut Corporate Taxes Anytime Soon
Corporate tax reduction
Last Updated Jul 27, 2011 1:30 PM EDT In testimony Wednesday before the U.S. Senate Committee on Finance, the president and CEO of Walmart joined several other chief executives in calling for modernizing the country's tax code and in particular, significantly reducing corporate tax rates to a level competitive with other countries. Walmart's Mike Duke said that his company paid an effective corporate tax rate in 2010 of 32.2 percent, while the average tax rate in developed countries around the world is 25.1 percent. Duke also said that the U.S. system of taxing corporate profits globally, rather than the territorial system used by other countries, hurt the ability of U.S. companies to compete. "My advice to this committee is straightforward: lower the corporate rate as much as you can, make the tax base as broad as you can, and move to a territorial system as quickly as you can," Duke said. Duke was one of four CEO's to testify before the Senate committee, which was examining how the … [Read more...] about Walmart CEO, Others Call For Lower U.S. Corporate Taxes
OKLAHOMA CITY — Public utility regulators from Oklahoma to Massachusetts are considering lowering the rates that homeowners and businesses pay for electricity and natural gas after a federal tax overhaul signed into law by President Donald Trump reduced the corporate income tax rate by 14 percentage points. The tax overhaul that went into effect Jan. 1 lowers the highest corporate income tax rate from 35 percent to 21 percent. Now, regulators and consumer groups such as AARP are demanding that the rates consumers pay be rolled back. Utilities are allowed to incorporate federal income tax obligations into the rates they charge customers. Exactly when and where consumers might see savings remains to be seen as regulators look into the matter. Oklahoma Attorney General Mike Hunter estimates five public utilities operating in the state will save at least $100 million a year. In Montana, regulators estimate utilities will save tens of millions of dollars a year in taxes. In Maryland, … [Read more...] about Some utility rates could go down after U.S. corporate tax cuts
An advisory committee established to help steer Connecticut out of its fiscal troubles recommended Thursday a new approach to the state’s finances that would cut the personal income tax while simultaneously raising the sales and corporate taxes.The wide-ranging recommendations by the bipartisan Commission on Fiscal Stability and Economic Growth also urged a slimmed-down state government, proposing to strip employee fringe benefits from collective bargaining by handing the task to lawmakers and urging the governor and lawmakers to find $1 billion in cuts. The commission also recommended the controversial idea of establishing electronic highway tolls — an idea that has caused clashes in the legislature for years.The panel, which was formed as part of the state’s budget approved last year, included enough to appease and anger both business and labor.For example, it proposes that Connecticut immediately repeal the estate tax, which currently applies only to … [Read more...] about Panel: Cut Income Tax, Raise Sales and Corporate Taxes
Duke Energy Kentucky’s first rate hike in over 11 years could end up reduced - or killed entirely - because of the recently passed corporate tax cuts.That's at least what national cases, a previous Kentucky case, and a spokesman for the state utility regulator indicate.Investor-owned utilities are legal monopolies regulated by state commissions. When a utility wants to raise its rates, it must go through state commissions.Companies in other states, like Arizona Public Service Co. and DTE Energy in Detroit, are already lowering their monthly rates in light of the corporate tax cuts passed by Congress last year. Duke is seeking its first rate increase in Northern Kentucky in 11 years. Duke cites a need to make "critical infrastructure investments in its electric generation and delivery systems," according to a Duke news release.On Feb. 1, Duke Energy pledged to lower rates in North Carolina because of the tax reduction."This is a unique opportunity that … [Read more...] about Duke’s NKY rate hike proposal: Will corporate tax cuts mean residents get spared?