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Scott Talbot of the Financial Services Roundtable breaks down what needs to be done to improve corporate tax reform.
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By joining us for the Democratic Convention Scott Talbott senior vice president government.
After the financial services roundtable.
Scott you're there to start lobbying for corporate tax reform.
Do the Republicans and the Democrats have the same thing in mind when they say that phrase.
I think that they're a little bit apart everyone is still trying to shape up what corporate tax reform will look like.
Obviously we need to do corporate tax -- -- to help bring down the deficit.
Both parties are talking we have seen as Simpson -- as a mostly agreed upon concept.
Both sides have a little bit different approaches but hopefully gain in the coming months and and a quarter to be able to come to an agreement on what we need to do.
Now Mitt Romney wants to cut the corporate tax rate 35% to 25%.
By the Democrats talking an actual corporate tax rate -- the -- wanna find a way to make corporations pay more.
I think it then don't let them speak for themselves but this point I think they're also -- about reducing the corporate tax rate.
As well as eliminating some reductions so what -- really have to be talking about is not the stated corporate tax rate back to be effective corporate tax rate that's the key.
That's -- -- the effective corporate tax rate.
Well tell me what you think the what are the two or three key things that need to be done that both parties should agree on to help corporate tax reform.
I think Martha got to lower the corporate tax rate the United States has the highest corporate tax rate in the industrialized world.
That makes us less competitive vis a vis the rest of the world we've got to bring down -- corporate tax rate to attract.
Attract investors and attractive from corporations as well addition we've got up to simplify the corporate tax code there's a lot of extra piece of that -- To provisions in there.
That can be reduced help simplify it make corporate taxes as well as individual tax is -- much easier -- reducing -- -- and eliminating or course simplifying some of the deductions.
His -- to key winning formula yet again as soon as we hear reduce the rate that's gonna make some Americans feel like well again they're they're favoring that the corporations.
-- do you guys want overall corporate tax revenue to go up to help balance the budget.
We think corporations have a role to play in the economy and -- -- -- you know it commensurate with their earnings and just like everybody should -- In terms of of how we're structured this -- in terms up.
-- -- Lowering the corporate tax rate actually increases jobs and that helps American so following the corporate tax rate you actually help.
The economy as well as individual Americans and that's a key -- to getting this economy started again.
Wow so you've got given the but overall -- Should there be an Alternative Minimum Tax so that every business pays some minimum tax every single year.
No Alternative Minimum Tax is is simply waiting to keep that effective tax rate high.
-- -- lower the rate make it simple and that helps attract corporate investments helps attract corporations so an Alternative Minimum Tax is the backdoor way.
It's making the code more complex and keeping that effective -- high so in general we're not -- -- For an Alternative Minimum Tax of the corporate or at the individual level of give an overall -- for corporate tax reform that means that the amount of dollars collected from -- -- -- goes up in terms of taxes.
When I get down and that's involves we've got a look and see what those provisions actually look like.
And the impact -- individual sectors of the economy.
-- let me -- this -- in general -- for lowering the rate.
We could be even for eliminating some deductions if done properly and that may result in next increase in corporate tax revenues.
But you have to balance that out -- too much rent income tax revenues from corporations.
And the effective rate would be -- and that scenario Dennis.
Think corporations are to be no better off than they are now -- actually see corporations leave the US or make us less competitive in the world economy not to mention the fact that they'll just take us higher taxes -- -- into the prices that we pay for their products and services.
All right thank you very much Scott Talbott of the financial services roundtable.
Have a good conventions are.
Thanks and it's my pleasure.
