Changing Corporate Tax Is a Tricky Balancing Act - NYTimes.com

Changing Corporate Tax Is a Tricky Balancing Act - NYTimes.com

I would like to have seen this idea get more press. Real action about reform of the federal tax system for corporations could yield significant economic benefits.

You wonder if the manufacturing and business environment in the United States would be improved if corporation tax rates were reduced. For many corporations their income tax expense (tax provision) is one of the more significant income statement line items that impact their earnings.

Past press has criticized Google and other multinational corporations about planning they have engaged in to source their earnings to tax favorable countries. These corporations have done this to control their tax expense, improve their earnings and thus improve the valuation of their stock.

You wonder how much the economic environment in the United States could change if our corporation tax rates were reduced and corporations could determine how to source their earnings to the United States by growing their businesses in the United States. Making the US corporation tax structure more competitive with the rest of the world might just help.