Tax revolution is planned in American business

29.02.2012 US president Barack Obama suggests to lower corporate tax rate from 35 % to 28 % «to impulse tax reform». He declared that the present system of corporate tax is unfairly complicated, obsolete, became unfair and inefficient. The structure lowering tax rate and expanding tax base with a view of competitiveness increase of all US companies can lead to the system modernization.

According to the budgetary management of the congress, the total amount of corporate federal taxes is 12,1 % of US profit in 2011. Rate decrease to 28 % with simultaneous privileges cancellation will allow to increase budget revenue in long-term prospect.

With a view of federal budget revenue the US administration intends to establish a minimum taxation level for all incomes of the American companies received outside of the country.

Expert’s opinion

"It’s not a secret that corporate rate in America is one of the highest in the world that puts the American firms in an unprofitable economic position. Rate decrease will allow to make business more competitive in the world market and will eliminate tax payment loopholes.

As to minimum taxation level for all American companies incomes received outside of the country, this circumstance can essentially lower the interest of US business in use of offshore tax schemes.

Let's notice, from the political point of view these reforms can be considered as Obama's desire to add chances to be re-elected. Whether corporate taxes will be really lowered, the near future will show".

On the basis: http://www.whitehouse.gov/

Lomakina Irina ( the director of Moscow office of Honest & Bright)