Jim McTague’s recent article (Corporate Tax Deal Unlikely) points out something I didn’t know. Republicans and Democrats are split not only on the repatriation of offshore corporate funds issue, but have drawn battle lines on the Red and Blue effects of reform on their expected campaign coffers in 2016.
According to McTague, Obama is
…. offering to give the GOP a tax break that clearly benefits its big business constituency—and, theoretically, enhances the Republican campaign chest—in return for benefits for his union constituency and, theoretically, his party’s bottom line.
Given the Clinton experience with a Republican House and Senate, there is a unique opportunity to enact corporate tax reform if everyone will give a little. Surely with Citizens United (see Influence Economy with Freedom of Speech http://wp.me/p4RP2Z-5r ) there is going to be plenty of 2016 money for both parties without holding tax reform hostage. The repatriation of funds alone is going to have stimulative effect.
Here’s a novice’s idea: Agree on a lower rate and incentivize corporations to repatriate their offshore funds. Earmark half the money in additional tax from repatriation to the Republicans’ expressed goal of deficit reduction. Earmark the other half to Obama’s infrastructure improvements—which are needed and not just pork.
Due to globalization it is more important than ever that we entice corporations to the U.S. with a lower rate. If the parties really believe in the positions they will compromise for the good of the country and not get no deal for the good of their parties.
Our greatness stems from our ability to harness diversity through productive partisanship and constructive conflict.