*CREATE A 25% TOP BRACKET FOR ALL BUSINESS INCOME, THEREBY REDUCING TAXES ON BUSINESSES AND ENTREPRENEURS
As suggested in the President's National Commission on Fiscal Responsibility and Reform, we should reduce the federal corporate income tax rate. I propose moving the rate from 35% to 25% to be more competitive with the rest of the world and keep jobs here in America. Moreover, we should simplify the tax code for all businesses by enacting a top rate of 25% for business income, no matter the size or structure.
*ALLOW BUSINESSES TO DEDUCT 100% OF CAPITAL EXPENSES
This stimulates investment in American businesses and increases the productivity of American workers. Make this permanent so people can plan their businesses and create jobs.
*MOVE TO TERRITORIAL TAXATION
As proposed in the President's National Commission on Fiscal Responsibility and Reform, we should bring the U.S. system more in line with our international trading partners. To do so, we must change the way we tax foreign-source income by moving to a territorial system. Under such a system, taxes are only collected in the country in which business is actually conducted.
As recommended in the President's National Commission on Fiscal Responsibility and Reform, after lowering the rates, we must simplify the tax code by removing special carve-outs and credits. There are roughly 80 separate corporate tax credits with a total budgetary cost of roughly $660 billion over the five fiscal years 2012 to 2016. I support eliminating all of these tax credits except those for charitable deductions.
*END CORPORATE WELFARE
According to the Cato Institute, the federal government spends about $90 billion annually to benefit corporations. That includes direct cash payments to businesses, such as subsidies to farmers. It also includes indirect benefits, such as loans, research, and marketing support for businesses. The government's record in picking winners and losers has been dreadful. Taxpayers should not be bankrolling particular industries favored by politicians.