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Opinion
Ed Kleinbard

Take the Odds on Corporate Tax Reform

The smart money always wagers against tax reform, but 2015 may be the year the sucker bet pays off, at least for business taxes.
A corporation of one.

A corporation of one.

Photographer: David Paul Morris/Bloomberg

The smart money always wagers against tax reform, but 2015 may be the year that the sucker bet pays off, at least for business taxes. The driver could be the outdated corporate tax system: The current 35 percent rate is out of step with world norms and holds back investment in the U.S. 

There is general agreement that the corporate tax rate should be in the mid-20s. There is also near-consensus that most tax incentives and subsidies should be thrown out to free up the revenue needed for lower rates.