Is tax reform bad for business?
When it comes to corporate tax reform, tax day felt more like a day in the life of Bill Murray's morose character in "Groundhog Day". While the rest of us filed our taxes (or filed for extensions), corporates can rest assured that they will continue to face the same complex web of exemptions and loopholes, the product of countless back-room negotiations on Capitol Hill.
The immediate assumption is that companies are fed up with this arrangement, and are vying with each other to support lawmakers - such as Republican Dave Camp, who are working for reform. But the truth may well be quite different. After all, while Republicans clamor for a lower headline rate of corporate tax, in reality most (if not all) companies' effective rate is much lower. Lowering the rate of corporate tax from to 25 from 35 percent, while ending the loopholes could result in more tax being paid. No wonder corporate tax reform is not high on Speaker Boehner's agenda.
#SettleUp what else is on the agenda today on Bloomberg Government.
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