Though U.S. corporations provide jobs to millions of Americans, it is commonplace for liberal politicians to rail against "greedy" corporations and to threaten them with heavy regulation and higher taxes.
It is true, of course, that some corporations use loopholes to reduce their tax bills sharply, as well as subsidies to boost their income. Many of those tax breaks are legal but unjust, and unconstitutional subsidies should be abolished outright.
It is also true that while most companies behave responsibly, some corporate executives have broken the law for monetary gain. They should be prosecuted.
But we find it interesting that President Barack Obama is quietly supporting efforts in Congress to reduce the United States' sky-high tax rate on corporations. America's corporate tax rate is second only to Japan's among the 34 industrialized countries that make up the Organization for Economic Cooperation and Development. Even taking into account the tax breaks that are available to U.S. corporations, our corporate tax rate is still the fourth-highest among OECD countries.
Now, the president commendably wants to see the corporate tax rate reduced.
Here is why: "[T]he Obama administration sees an overhaul of the corporate tax code as a way to spur growth," The Washington Post reported.
The Los Angeles Times noted that Republicans in the House of Representatives want to reduce the corporate tax rate from its current 35 percent to 25 percent, while the president and some Democrats want a smaller cut in the rate. Any of the various proposals likely would involve closing some loopholes, too.
The trouble with high corporate taxes is that they make U.S. companies less competitive with foreign companies. High taxes also encourage domestic companies not to bring back to the United States some of the profits they earn overseas.
So it is good news that the president recognizes that lower taxes on corporations would boost U.S. competitiveness and create growth.
It would be even better news, though, if he would drop his call for increased taxes on higher-income individuals. As with corporations, high taxes on individuals discourage them from investing, and harm economic growth and job creation.
Low individual and corporate tax rates - coupled with huge reductions in wasteful federal spending - would begin to reduce our national debt while boosting employment. That is much to be preferred over our present, unsustainable practice of having high taxes plus out-of-control spending and debt.