Last Call

My Least Favorite Economist, Jim Pethokoukis, is too busy screaming and grunting at President Obama's plan to lower the corporate tax rate, but close loopholes in the tax code, to notice the real outrage here.

No corporation in the US actually pays 35% on income.  Too many loopholes.  K-Drum puts Jim to bed.

Wow! That's quite a bill of particulars. But you know what's amazing? In this entire thousand-word blast Pethokoukis apparently doesn't have room to explain the distinction between statutory tax rates and effective rates. But it only takes a sentence or two, so here it is. The statutory rate is the top rate in the tax table. Right now it's 35% for corporations.

The effective rate is what corporations actually pay after their accountants are done combing the tax code for deductions and loopholes. The former is one of the highest in the world. That latter has been falling for years and is now one of the lowest.
 
That's right! The actual federal income tax paid by corporations is one of the lowest in the world. Even if you think statutory rates are more important, surely this is germane to the conversation?

Not when the conversation consists solely of how President Obama has forever destroyed America's business community, he's destroyed the Dow all the way up to 13K.   Sheesh.