Heidi Moore rides again!

Here is Obama\’s plan: he wants to lower the corporate tax rate to 28%, and for some industries, it would be even lower; the manufacturing sector, a particular pet of Obama\’s, would get a 25% top tax rate. That part of the plan is not particularly revolutionary; Obama proposed it last year, when it briefly excited the corporate community and then fell with a thud. Republicans made tax cuts a life-or-death issue last year, and they should welcome the idea.

The idea of corporate tax cuts, taken alone, is sadly not particularly useful; most big companies don\’t pay the full tax rate because they\’ve long ago figured out how to avoid it, so lowering the imaginary dollar value of what they owe is not going to make a huge impact.

The second part of Obama\’s plan – to increase infrastructure spending – is productive and long overdue. Obama wants to use the money raised from corporate taxes to do this. If that works, great.

There\’s a glorious joy to this.

So, cut corporate taxes, Republicans should like this. Spend the extra money on infrastructure, everyone should like this.

Hunh? A tax cut is going to bring in extra revenue? Umm, so it\’s not a tax cut, is it?

And our Heidi simply gaily sails over this contradiction.

The actual proposal is that the rate should be cut, certain allowances should be cut at the same time (depreciation for example) and overseas profits should be taxed as they currently are not. What is being proposed is a rise in corporate taxation, not a cut. That\’s why there\’s extra revenue raised to be spent on infrastructure.

And no, just for the avoidance of doubt, no one at all is invoking the Laffer Curve to explain this rise in revenue.

8 thoughts on “Heidi Moore rides again!”

  1. See also “The Robin Hood tax is an incredibly tiny tax that would raise elevently million billion dollars”.

  2. You fail comprehension. “Obama wants to use the money raised from corporate taxes to do this” doesn’t say “Obama wants to use the money raised from changes to corporate taxes to do this”.

  3. If he uses the money raised from charging corporation tax to do something then surely there’s less money available for other stuff like bills?

  4. Connolly fails yet again, is there no end to the lies you will tell as a shill for progressivism ? Obama’s “plan” is not new, and is just another piece of cronyism that he will use to hand out money to his supporters. I very much doubt it will go anywhere anyway, #obamafailagain

  5. Perhaps in her mind (issue of extra money versus replacement money) she was already referencing the bulk of her article that followed: the Delaney bill – big multinational companies get their long waited for corporation tax holiday to migrate billions back to the US (and this would generate extra C tax that wasn’t there before) to fund infrastructure?

    @ Ed: He simply said “you fail comprehension”, that’s all.

  6. Heidi thinks that you can pluralise Nemesis and that to do so you pretend that the name of a Greek goddess is third declension Latin noun. Her economics is not much better.
    Obama is tagging on to a *Republican* suggestion (now gone bi-partisan) that the tax code be simplified with a reduction in the “headline rate” of corporation tax and the elimination of almost all loopholes. The Republicans want this to be prima-facie tax-neutral, some (?most) Democrats want to use it to jack up the average tax rate. The Republican plan would almost certainly lead to an increase in tax receipts (not just “Laffer curve, here we come”, but also saving the odd billion on tax consultants would increase taxable income!). Obama wants to use some of the money that would be received from the increased tax take (if the Senate Democrats would co-operate) to increase infrastructure spending *but* that ain’t gonna do much, especially as most infrastructure spending is done by the state governments, not the federal government.
    W C is quite correct in his parsing of Heidi Moore’s not-very-bright comment but Tim is better at interpreting what Obama actually wants.

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