Including state and local taxes, the US now has the highest statutory corporate tax rate in the industrialized world, stifling investment in America. That rate must come down. And lowering individual rates would improve incentives to work and encourage economic growth.
The Bipartisan Policy Center’s Debt Reduction Task Force, chaired by former Senate Budget Committee Chairman Pete Domenici, a Republican, and former White House Budget Director Alice Rivlin, a Democrat, recommends lowering the top rate for both individuals and corporations down to 28 percent. This would be part of a larger package that would eliminate or reform a host of tax breaks, simplify the code, and raise revenue.
Equalizing the top rates would also eliminate incentives to vary corporate structures for the sole purpose of better tax treatment (currently a deadweight loss to the economy).