The Wall Street Journal Op-Ed piece titled, “Ending the One-Two Corporate Tax Punch” examines the effectiveness of the current U.S. tax rules for overseas and domestic business income.
Attorney Tom Nichols and economist Brian Reardon discuss the effects that the current two-layer tax system have on U.S. companies and business owners and how that impacts overall economic growth. The article states that in order to fix this counterproductive tax system, Congress should consider taxing all business income only once and at the same reasonable top rate, which would reduce the cost of capital, help balance out the tax treatment of debt versus equity and discourage inversions, profit sharing and unproductive hoarding of cash. A single-layer tax system would also mean more business investment, more employment and higher wages.
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