Steve Forbes tells Newsmax.TV that the Obama administration’s plan to cut the corporate tax rate from 35 to 28 percent is really a “house of horrors.”
While the plan outlined today by Treasury Secretary Timothy Geithner would seek an even lower effective rate for manufacturers, the overall plan represents a “not-so-stealth tax increase” that will do more harm than good, according to Forbes, speaking in an exclusive interview on Wednesday.
Story continues below video.
“It also plays games in terms of picking winners and losers instead of trying to have a neutral tax code,” Forbes insisted. “You see it in terms of taxing overseas earnings which would be devastating to this global economy, reducing deductibility of interest, trying to put taxes on S-Corps and limited liability corporations which would devastate small businesses, playing games with the oil industry and the aircraft industry, going after life insurance, trying to make deductibility of terms of investments less by giving a premium to inflation. I mean you go down the list and it’s a house of horrors.”
Under the Obama administration’s plan, corporations would have to give up dozens of loopholes and subsidies that they now enjoy. Corporations with overseas operations would also face a minimum tax on their foreign earnings.
The proposed tax rate on dividends would soar to almost 45 percent, and strike yet another blow to America’s economic recovery.
“It’s going to hurt the value of their equities, whether it’s direct ownership through mutual funds or through their pension funds,”
Read more on Newsmax.com: Forbes: Obama’s Tax Plan ‘House of Horrors’