Taxing Business
McCain is generally considered to be more friendly to Corporate America than is Obama, who wants to increase some companies' tax bite in a few ways.
· Reduce corporate tax rate to 25% from 35%.· Make R&D credit permanent, but change formula.
· Repeal several oil company tax breaks.
· Accelerate business expense deductions.
· Broaden corporate base.
"Serious reform is needed to help American companies compete in international markets. I have proposed a reduction in the corporate tax rate from the second highest in the world to one on par with our trading partners." -- McCain*
· Consider reducing the corporate tax rate in conjunction with closing corporate tax loopholes. · Make R&D credit permanent.
· Impose windfall profits tax on oil and gas companies.
· Exempt investors from the capital gains tax on their investments in small businesses and startups if they made their investment when a small company was valued below a certain threshold. That threshold has yet to be defined.
· Make renewable production credit permanent.
· Require companies to verify transactions that have benefits other than their tax benefits.
"...We can't just focus on preserving existing industries. We have to be in the business of encouraging new ones -- and that means science, research and technology." -- Obama**
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Last updated October 29 2008: 12:15 PM ET
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*June 10, 2008, Speech, Washington, D.C.
**June 16, 2008, Speech, Flint, Mich.
*June 10, 2008, Speech, Washington, D.C.
**June 16, 2008, Speech, Flint, Mich.
