Bipartisan Senators Propose Deficit Summit
In a letter to President Obama this week, 32 Republican and 32 Democratic Senators proposed a budget summit to implement "comprehensive deficit reduction measures." Senators Michael Bennet (D-CO) and Mike Johanns (R-NE) were the leaders of the bipartisan group.
The letter noted that the Presidential Fiscal Commission had provided "an important foundation to achieve meaningful progress" on deficit reduction. Six senators (three Democratic and three Republican) have been working to develop an actual bill that would implement the recommendations of the Fiscal Commission.
The group of 64 senators now recommends that the President develop a comprehensive package that will attack the budget deficit. The comprehensive bill would include "discretionary spending cuts, entitlement changes and tax reform."
In the view of the bipartisan group of senators, a joint effort "would send a powerful message to Americans that Washington can work together" on deficit reduction.
In a speech on March 21, Majority Leader Eric Cantor (R-VA) proposed both a reduction in the corporate tax rates and repatriation of corporate overseas funds at favorable rates.
Leader Cantor notes that the American corporate tax rates are "50% higher than even those in Europe." In his view, the international competition by multi-national companies has encouraged most European countries to reduce their corporate tax rates below those of the U.S. He suggests, "We must make America competitive again by lowering the corporate tax rate to at least 25%."
The letter noted that the Presidential Fiscal Commission had provided "an important foundation to achieve meaningful progress" on deficit reduction. Six senators (three Democratic and three Republican) have been working to develop an actual bill that would implement the recommendations of the Fiscal Commission.
The group of 64 senators now recommends that the President develop a comprehensive package that will attack the budget deficit. The comprehensive bill would include "discretionary spending cuts, entitlement changes and tax reform."
In the view of the bipartisan group of senators, a joint effort "would send a powerful message to Americans that Washington can work together" on deficit reduction.
In a speech on March 21, Majority Leader Eric Cantor (R-VA) proposed both a reduction in the corporate tax rates and repatriation of corporate overseas funds at favorable rates.
Leader Cantor notes that the American corporate tax rates are "50% higher than even those in Europe." In his view, the international competition by multi-national companies has encouraged most European countries to reduce their corporate tax rates below those of the U.S. He suggests, "We must make America competitive again by lowering the corporate tax rate to at least 25%."
This would help to get companies like GE to keep more profits in the US and pay some taxes.
The proposed corporate tax rate would be accompanied by comprehensive tax reform. In addition, Leader Cantor notes that there is "almost $1.2 trillion in overseas profits" that American companies are not returning to America due to the tax rate. He proposes that these funds be allowed to return to America at a lower tax rate.
The proposed corporate tax rate would be accompanied by comprehensive tax reform. In addition, Leader Cantor notes that there is "almost $1.2 trillion in overseas profits" that American companies are not returning to America due to the tax rate. He proposes that these funds be allowed to return to America at a lower tax rate.
Source: Washington Hotline March 2011 4th week.
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