Ending Corporate Tax Breaks Could Drop Corporate Rate to 25 Percent

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Eliminating tax subsidies for businesses should enable lower corporate tax rates and improve U.S. competitiveness, University of Southern California law professor Edward Kleinbard says. But ending such tax expenditures should not be expected to reduce the federal budget deficit, he says in testimony before the Senate Budget Committee. Kleinbard, who served as the Joint Committee on Taxation's chief of staff from 2007 to 2009, instead argued that changes to tax expenditures that benefit individuals should be used to help reduce fiscal red ink. He advises such a division because there are not enough savings in corporate tax expenditures to also pay for deficit reduction.