HONOLULU (HawaiiNewsNow) - President Trump proposes to raise the standard deduction for individual taxpayers. That's a good idea, because itemizing is a pain in the butt, and the more people take the standard deduction, the less cheating there is. The president also proposes reducing corporate income taxes, but whether that's a good idea depends.
Officially, the corporate tax rate federally is 35%. But almost no companies actually pay it. Two-thirds of active corporations pay no federal tax! In five years no federal income tax was paid by NextEra, Verizon, Priceline, Boeing or GE. Wells Fargo, Time Warner Cable, AT&T and Exxon took tax breaks in the billions. So did Eli Lilly, Merck, DuPont, Dish Network, Heinz, and Halliburton.
Of U.S. corporations with overseas operations, two thirds pay more taxes to those countries than to America. Congress says taxing 35% of earnings is uncompetitive. That would be true if we really did that, but mostly we don't.