Letter: Flaws Found in Obama Tax Plan Article

by Letters to the Editor | February 28, 2012 7:02 pm

Just finished reading Jonathan Berr’s article “New Obama Tax Plan Doesn’t Go Far Enough[1],” and found it contains several flaws in logic. One such is the reference to Ireland’s low corporate tax rate and its current economic difficulty. Mr. Barr fails to note that Ireland cannot print money and therefore cannot exert any pressure on monetary policy, it can only work within the constraints of fiscal policy, and considering its current issues one has to wonder where Ireland would be if it did not have the lowest corporate tax rate in the world.

The other is the reference to LIFO. If one wants to encourage the removal of an accounting “gimmick,” then perhaps one ought to consider the MarkĀ  to Market Rule which was the cause of the economic meltdown in our financial community. However, I digress; companies would not have to revert to LIFO if corporate rates are low — in fact I would favor eliminating them since corporations do not pay taxes, they just pass on that cost to the consumers of its goods and services.

– Ted Isabella, Bluffton, S.C.

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Endnotes:
  1. New Obama Tax Plan Doesn’t Go Far Enough: http://investorplace.com/investorpolitics/new-obama-tax-plan-doesnt-go-far-enough/

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