by Mitch Kokai
Senior Political Analyst, John Locke Foundation
Pete Sepp, president of the National Taxpayers Union, is arguing for a 20 percent corporate tax rate, saying that going any higher, even by one or two percent, will make the United States less competitive.
The National Taxpayers Union along with Americans For Prosperity, Americans for Tax Reform, Club for Growth, and Freedom Partners, joined 26 organizations to urge Congress to keep the corporate tax rate at 20 percent.
Speaking on a conference call, … Sepp explained that state and local taxes make the corporate tax rate even higher, so a 20 percent rate is essentially a 25 percent rate.
“Even if we are reducing this rate to 20 percent there is still effective state and local corporate tax rates to consider,” he said. “Our combined tax rate even with a 20 percent federal rate will still approach close to 25 percent when you factor in the state and local issue.”
“When you do that you then come to realize that at the end of the day a 20 percent corporate tax rate makes us just barely competitive with the average OECD rate, which is a little under 24 percent,” he said.
Grover Norquist, president of Americans For Tax Reform, echoed this statement and said a corporate rate of 20 percent was already a compromise.