There is a lot of momentum in the capitol for corporate tax reform in 2015. At 35%, the U.S. corporate tax is the highest among developed countries, being just behind France. A major part of the issue under consideration for change is the United States’ practice of taxing “worldwide” income, whereas most developed countries only tax profits within their own country.
The president wants a competitive but “fair” cut to the corporate tax rate, to 28%. Republicans want it to be 25%. While reducing the corporate tax rate in general, President Obama also wants to raise taxes on existing U.S. profits earned and held abroad.
Additionally, there is still considerable disagreement on closing corporate loopholes, which many businesses rely upon.
“Corporate America is facing two great constraints, cash-flow and taxes. As for corporate tax reform, if we want to move into a sustainable growth economy, reducing corporate taxes in line with the rest of the world is critical.” – Henry Wozow, CEO. “Invoice factoring services solve the cash-flow problems for many B2B businesses in a wide variety of industries. Using factoring as a type of financing also allows for businesses that owe taxes, an opportunity to clear up lingering tax issues so that the business can focus on growth. Businesses should be thriving in this recovered economy and if the corporate taxes are adjusted, they will have even more of an opportunity to do so.”
As tax season dawns, the principal’s at Universal Funding Corporation will keep a close eye on the corporate tax reform issue in regards to how it affects their clients’ bottom lines.