SEPTEMBER 26, 2012

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CHAIRMEN

PRESIDENT

DIRECTORS

New America Foundation

0    (       "    " !   "  " ' 3 0 " '   ) '     '  % "   ' %  !        

The Committee for a Responsible Federal Budget

h b b ` y x c i w t v c u t ` s r f e b a R Q z H R V T T V y G T S R Q y x c i w t v c u t ` s r a c q b c p i f h P I V h R Q V T T V y G T S R Q u u c a i f ` y ` a c q I V X R W V x G T S R Q x c i w t v f e f ` h u u c a i f ` y r a ` x P G w f ` h x e w f t ` Y e h a c b i u c T w c x h f o c x ` f e a c f c s a c f f ` a x e F l I U G T Q R F G T S R Q b a ` c d w f e r ` f ` h u u h b b ` y f e f ` h x e q r a h e x ` x f c w h u c a d c x ` x n e x m ` G T l I t v f e f ` h u u c a i f ` y r a ` x c a h i P I Q G h b b c q Q c q Q b a ` x Q f h Q

ABOUT
h e y a c b a ` Y I P I H G F E g f e d a c b a ` Y I P I H G F E b c p a c b a ` Y I P I H G F E c a h a c b a ` Y w V Q P R v

SENIOR ADVISOR

Reforming the Corporate Tax Code

The Case for Corporate Tax Reform

G    6  7 6     6   7    9    6          

D     7  1               6  1          1 9 6

D  6    9   6     1    9       1  6     6      

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t c f g y x g q e c g w u x g e e d f u c x u y g d x g w g v h g u c

G                   a    E     a     

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FIG 1: CORPORATE TAX REVENUE AS A PERCENT OF GDP AND STATUTORY TAX RATE (2010)
         B        %    1 7        %  3             1            H  A       1           ` Y      6        ( W      X  1    W 7    H  A 7 5 4

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 o f k n l m l f f k j i h g f e

FIG 2: HOW THE CURRENT CORPORATE TAX CODE WORKS

t } y x s s w  v s w x  s s r w q p s w s  } x s y s w q | } ~ z v w q r s y ~ p  z q p t } y } q p s p x ~  z q p x  } ~ s w p x  | y z v } s w ~ } ~ | r x ~ s r q p ~ y s y x  v y  r x s s ~ y { x ~ | } x q  y w q y }  r s  y ~ p q z z ~ x  } v ~ p q y x q  y  r r ~ x q w  q y s x s r x q p s } ~ s ~ x ~ p w q s w ~ y s y ~ w q w q p | } w s } q z v y s w p  q x q p s y } s  s y x ~ y w s y ~ w y s x s ~ y y } s  s y } ~ s } } s x  } v } ~ { z y x s  p s x  r s y ~ p q z z ~ s w ~ } s p w v q } s w | { z y x s w w v u t s r q p

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Paying for Corporate Tax Reform

A C c T Y b ` a C E ` H T D H T Y C X E W V U F H T S C

FIG 3: CORPORATE TAX RATE REDUCTIONS FINANCED FROM BASE BROADENING

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 P p a f i g h P R g U a Q U a f P e R d c b S U a ` P

FIG 4: CORPORATE TAX RATE REDUCTIONS FINANCED FROM OTHER OPTIONS

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Prominent Tax Reform Proposals

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FIG 5: COMPARISON OF CORPORATE TAX PROPOSALS

h m r d s  p h l e y ~ l f w p r h u q h e y u h q d w p k ~ i } w p i h | { l u q f e w l u u l m u d k f v u f f e q p s p d s t e h h e d p s d p r q h e p o n m l k j i h g f f e d

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B  3          C    2   )         2   0     ( !     0 0 !      ) 2 ( ! 5               0 1   #  5

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Conclusion
 ! A    D 5 (       #   0  $  #            ! )  $   ! 0   2 2         )  !  $   0   2  1       #   0 ! 2   $  #       0 ! 2  2  !      $              2      3  1  2   (          3  &        ! )       0 D 2  #     2  1   0 ! 2  2               3      0 ! 2   1   ( ! 2  3 0      )  0    3 $ !  3      C (     2 2     ( (  0  (  (       3 6 &   0     $ (      0  2       0         3  2  1    A       0     ( ! 2  3 0      0     2 (   0    "    ! 2   0   !    3            3         1 $   ! 0 0  l k j  1  (  !  (         0           "    (       3  $  2 ! ( 0  1   $  3 0  3  1   $  3 0   3   0  (   2     3    "   6 & "   #   0  $   !  0   !      0 ! 2   0      2  3  $  "   2  2  1   2   0 f e d  3  $               0  3  $  0 ! 2      ( (  0  (   3 6 &     ) (    !  D  !  #          8  5       2   5    !     )   2     1 "   !  )  p q y r r q u s r p p q y p r y y x w v u q t s r q p i f h g f e ` d c ` b a ` Y

Endnotes

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Additional Resources