Corporate Tax reform in USA

22.05.2014

The Chairman of USA Budget Commission once again published proposals on reform of Tax system of USA. Besides changes in PIT, this proposal submits the decrease of corporate tax.

Right now the whole system of tax rates on company’s income is in place in USA. The rates are dependable on company’s income and are between 15% and 35%. D. Camp, the chairman of the Budget Commission, proposes to introduce the single tax of 25% gradually decreasing the corporate tax until 2019.

The lowering of tax rate from 35% to 25% will not only improve international competitiveness of American economy, but will contribute to the corporations having more resources and opportunities for investment and doing business in USA.

Source: http://waysandmeans.house.gov/uploadedfiles/ways_and_means_section_by_section_summary_final_022614.pdf

Expert’s opinion

Proposals on changes in corporate taxation are the common topic of discussion in USA. Corporate tax rate in USA is too high in comparison with other countries. Undoubtedly, the decrease of the tax rate to 25% will attract investment flow to the country. But if we are talking about American companies than the lowering of corporate tax is not something that will make their life easier. These companies are the stable supplier to the American treasury even if they are getting their profit outside of the territory of the States. And surely, I doubt that American government will do something in deprivation for itself, because with the lowering of tax rate will be cancel some of exemptions.

Anna Shevchenko ( Lawyer, Honest&Bright)