Natalie Gonnella
Responding to Japanese Prime Minister Naoto Kan’s announcment that Japan will lower their corporate tax rate to 5% next year, Minnesota Representative and Tea Party darling, Michele Bachmann took aim (via an Investor’s Business Daily op-ed) at current US tax policy.
At 40%, the United States (after Japan’s reduction) can sadly "boast" the highest corporate tax rate in the world. To this troubling news, Bachmann commented:
“The U.S. must remain competitive. As an industrialized nation and leader on the world stage, we must be out front in the race for jobs and a robust economy. It is time to sink or swim and, as a former federal tax attorney, I know that if we allow our businesses to face the highest existing corporate tax rate, we will certainly sink.”
To combat this issue, earlier this month, Bachmann introduced the End Tax Uncertainty Act of 2010 which she believes will “effectively ease the tax burden on America's families, individuals and businesses.” The bill aims to cut the federal corporate tax rate to 25%, giving the US a more competitive edge in relation to corporate growth and business investment.
She has also noted that the impact of the change would “increase the number of jobs annually by 581,000 on average from 2011 to 2020. Our GDP will rise by an average of $132 billion, and a typical family of four will see its after-tax annual income rise by almost $2,500.”
With the lame duck session now complete, Representative Bachmann aims to make her proposed tax reduction one of her key goals for the 112th term. As the GOP majority looks to decrease unemployment, encourage business growth and make a serious dent in the current deficit, Bachmann's proposal will be an interesting one to watch as the new congressional session unfolds in 2011.
