U.S. Business Has High Tax Rates but Pays Less - NYTimes.com

Great article in the New York Times about the impact of corporate income tax rates on American businesses. I cannot imgine a reduction in corporate income taxes rates without an adjustment of the taxable income base. The federal budget cannot afford any further loss of revenue. There are a number of credible arguments that reductions in corporate income tax rates could have a signficiant impact on bringing high quality jobs (manufacturing!) back to the United States.

It will be interesting to see how the states might react to a broading of the taxable income base. Will they reduce rates or use federal changes as an opportunity to collect more revenues?

I think the article is correct that nothing will happen before the 2012 elections. Neither party has the desire to be portrayed in the press as having provided a tax break to large corporations.

U.S. Business Has High Tax Rates but Pays Less - NYTimes.com