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FBN's Peter Barnes on the U.S. replacing Japan as the top corporate taxer.
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Coming out of Spain everybody.
-- back here at home the United States is winning but business hates it this Sunday April 1.
The US we'll have the highest corporate tax rate in though world.
Peter Barnes joining me now -- about -- with some statistics that are gonna surprise many of our viewers Peter.
-- -- -- this Sunday Japan cuts its corporate tax rate by two percentage points leaving the US with the highest marginal corporate tax rate of any major industrialized nation more than 39%.
When you combine that 35% top federal tax rate.
With these state corporate tax rates critics say that rate makes the US less attractive for investment which hurts job creation.
The rate coalition made up of more than twenty big companies has launched a new PR campaign campaign.
Featuring a foam finger to point out that being number one is it always something to cheer about.
Better out of the big red finger.
Just to symbolize as it was it to -- to draw attention to this April fool people first.
Date as there's not a joke folks.
We are hurting ourselves we are damaging our own competitive situation around the world.
-- allowing taxes to get too high and encourage capital flight.
I had a -- finger.
Analysts say the real rate to look -- and look at is the top effective marginal tax rate the rate companies pay after all of their tax breaks and deductions but even then.
At about 24% the US was more than six percentage points higher than other industrialized nations.
Politicians on both sides of the aisle are now rallying around major corporate tax reform the house Republican budget approved yesterday would reduce the top rate to 25% the president has proposed lowering it to 28% both sides would do this by eliminating many many major.
Business tax breaks and deductions but the president's plan would also raise about 250 billion dollars over ten years which critics say is uncompetitive.
But supporters say is fair given that Republicans are proposing trillions in spending cuts -- no new taxes.
Worth -- shared sacrifice and cutting corporate tax rates the same time there's an -- for competitiveness but you shouldn't.
Increased business competitiveness.
Offshore -- shouldering the burden of taxation on -- working class families.
-- So the debate is giant ahead Cheryl.
But they're given a -- that political year electioneering.
Experts are not expecting anything to get done on this this year really looking to 2013.
What is unfortunate Peter considering that the corporate tax rate is the major.
The number one thing as your goal -- number one there that CEOs come on this network they complain about is the fact that they -- tax basically to debt.
And they are not hiring -- not creating jobs in this country.
Because a bit -- all of -- is gonna get ignored this year.
Well part of the problem -- Cheryl is the business community is very deeply divided about all of this you know in in corporate tax reform.
That would be winners and losers you know tech companies in.
And software companies might see their rates rise because they would lose.
Investment research tax credits and things like that other companies would win win lower tech -- the business community have to sort this out.
With amongst it within itself.
All and then we'll ask Washington do something about it and then nothing happens I decide what politics alright Peter Barnes thank you very much -- -- props today.
