You're watching...
Diana Furchtgott-Roth, Manhattan Institute senior fellow, on the corporate tax reform plans from President Obama and Governor Romney.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
I -- that -- President Obama and GOP hopeful Mitt Romney agree that the US corporate tax rate.
Needs to come down but a major difference between the two is whether to tax profits companies -- overseas territorial tax.
The Manhattan institute analyzed both plans and senior fellow Diana -- -- Roth joins us now with those results and Diana.
OK you've looked at the the plans -- which one it is better for this country.
What we need is a tax plan that can compete with a lot competitors -- top tax rate is.
35%.
That's -- up corporate tax rate is.
The average tax rate about competitiveness 23%.
Plus we tax guns on that -- -- all over the world.
-- competitors tax income of corporations.
In that in their own country.
So Switzerland taxes it's corporations in Switzerland we tax -- all over the world what does it mean.
It means that the multinational has to choose a place to have headquarters then that's likely to choose the United States and we need to change that by bringing up corporate tax code in line.
-- of those about competitiveness.
You know I'm David to the north Canada has been 15%.
Tax rate we need to be closer to a 15% tax rate.
And that Romney has proposed to lower the tax rate to 25%.
And tax corporations only on -- income in the United States.
So that's.
We're talking about the territorial tax system before I ask you on that this is listening to what vice president Joseph Biden had to say about -- territorial tax.
During his debate.
Last week.
It's called a territorial tax.
Which the experts -- looked at.
And they acknowledge it will create 800000.
New jobs.
All of them oversees.
All of them.
Is that a fair criticism of the tax system Diana whine -- don't know.
And it really is not that comes from professor -- closing that we -- region -- -- in -- gone.
And what she didn't take into account while many -- she didn't take into account.
But if we have -- taxes yet but gonna have more corporations locate yet.
And if corporations.
Do expand abroad that is also linked with increased jobs here in the United States.
Look at apple for example it employs people abroad it -- people here in the United States what we don't what is he's not multinationals.
Going abroad.
Like -- on insurance that was in Chicago it's just relocated to Britain in such a low tax rates.
-- on multinationals relocate abroad we don't get any tax from them at all.
And we need to be competing with the rest of the world we need to make America the best place to invest both from -- -- and the regulatory standpoint.
So by doing so one of the major issues of course is lack of job creation you believe that truly would lead to job creation.
Exactly because right now corporations.
Multi nationals -- holding.
Buyouts.
That coding billions of dollars billions of dollars off -- Then not they don't wanna bring it back because it'll be taxed at a -- 5% rate right what we need to do is.
Festivals say that when not gonna tax thing come from abroad that would let them bring it back -- and reinvested that would be a massive stimulus.
Terrific well thank you so much for joining us Diana first -- also with the Manhattan institute Diana thank you so must really -- -- sharing your.
