Corporate tax reform becomes more likely

Feb 06, 2012

Aug. 30, 2011

President Obama indicated that he may be willing to collaborate with the business community on reducing corporate tax rates at a recent meeting of the President's Economic Recovery Advisory Board (PERAB).

In its comprehensive report, PERAB released a report outlining a wide array of options for simplifying the nation’s overly complex tax system, improving taxpayer compliance and reforming the corporate tax system.

Obama said he would consider ideas on lowering corporate tax rates if it’s done in a way that doesn’t “massively add” to the federal deficit and that establishes an environment for job creation and investment.

The panel also discussed extension of the expiring bush era tax cuts. Obama continues to hold firm on letting the tax breaks expire for those earning above $250,000.

One member of the panel, Martin Feldstein, suggested a two-year extension of all Bush-era tax breaks, maintaining that the economy needs a climate of business certainty temporarily but cannot afford permanent cuts in the face of massive long-term deficits.