Trumka: Obama’s tax plan needs more from corporations

Here’s what AFL-CIO President Richard Trumka had to say on Wednesday about President Obama’s proposal to lower the corporate tax rate from 35% to 28% while closing some tax loopholes:

“The Obama administration’s proposal to reform the corporate tax code takes a number of steps in the right direction, but should have asked more from corporate America. Its goal of reducing tax incentives for shipping U.S. jobs overseas is surely the right one, as is its focus on encouraging investment and production in the U.S. manufacturing sector.  It is especially courageous for the administration to propose reducing tax incentives for the kind of leveraged buyouts that can do so much harm to workers and their communities.

“But the administration’s corporate tax plan ultimately comes up short because it fails to raise any revenue beyond what is needed to pay for business tax breaks.  In an era of difficult budget choices, giving Wall Street a pass on paying its fair share is fundamentally inconsistent with any notion of shared sacrifice.  Corporations already pay too low an effective tax rate to support the kind of infrastructure investment and education and skills upgrades that our country so urgently needs at this time, and that are so essential to the long term success of business, working people, and our nation.”

More on the proposal:

► In today’s NY Times — Winners and losers in Obama’s corporate tax proposal— Some of the prospective losers are familiar targets, including oil and gas companies, private equity firms and companies that move jobs overseas.

► At Huffington Post — Corporate tax reform: Be careful what you wish for (Jared Bernstein column) – Everyone loves the first part of the mantra: lower the rates. Now let’s see how the feel about the second part: broaden the base.

► In today’s NY Times — Reform and corporate taxes (editorial) — The Obama framework for business tax reform is a start to a long overdue debate. But serious reform requires specific proposals, tough trade-offs and hard numbers attached.