Ways and Means Committee: January 20, 2011 - Rep. Doggett: How Much More Will America Borrow from the Chinese so that Corporations Can Pay Less?
"Let it be remembered that Congress began this debate on whether or not to reduce corporate tax revenues to pay for our National Security on the same day that our Committee Leadership, like our President, is meeting with the Chinese.
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"Because the first question that needs to be answered in this debate is how much moreAmerica will borrow from the Chinese so that some corporations can pay less. To say, as the Representative of the Business Roundtable has done here that, ‘Revenue neutrality should be off the table,' may be consistent with the misguided holiday tax deal that added another almost trillion dollars to the national debt. But it is just another way of saying, ‘Go borrow from the Chinese.'
"Of course there may be some merit to lowering the statutory corporate tax rate—all of our witnesses are suggesting that there is. One should realize of course that to the extent that we lower the statutory rate if all corporations were paying that—that would represent a substantial tax increase for many of our multinationals— You've noted General Electric for one that would be paying many times the effective rate if it paid the lowered statutory rate that's being proposed.
"To call for a pure territorial system is really just another way of saying we want a permanent repatriation of profits holiday like the one that didn't produce more jobs for Americans last time, and it's a sure fire way to encourage the continued export of more American jobs.
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