The following post is an extension of the discussion held at the January, 15th 2013 Encore Wealth seminar. The lecture, titled “Impact of Decisions in Washington on Small to Medium Sized Businesses as it Relates to Taxation Issues in the Coming Year”, was presented by Tom Montgomery of Montgomery Coscia Greilich, LLP.
Our three previous posts, covering the American Taxpayer Relief Act of 2012 and the newest “Obamacare” taxes have sought to explain the larger picture of the American tax climate. Today, we will take this larger discussion of taxation and examine it in the context of corporate taxation, specifically the impact corporate taxation reform would have on the larger economic climate. While the possibilities of reform are endless, we will be examining two in particular – proposed cuts in corporate income taxes, and proposed tax holidays for repatriation of foreign earnings.
Corporate Income Tax Rate
As of right now, corporate income tax rates are as follows: