Personal Finance: Corporate tax reform is worthy but the process is flawed

If all goes according to plan, the Senate will vote soon on the much-anticipated tax bill. The core of this ambitious measure (fully 75 percent) is aimed at a long-overdue reform of the U.S. corporate tax regime. While our major trading partners have all modernized their systems and substantially reduced the statutory rate on business taxes, the U.S. holds the unfortunate distinction of imposing the highest corporate tax rate in the developed world.

So all else being equal, this effort to make us competitive with the rest of the world should be broadly hailed. Reducing the nominal rate from 35 to 20 percent closes the gap, while defenestrating numerous loopholes in the current code will help ensure that the tax burden falls equally upon all corporations.

Chris Hopkins

Chris Hopkins, CFA, is Vice President and Portfolio Manager for Barnett & Company. He is a native of Whittier, California and has lived in Chattanooga since 1988. He began his career in finance in 1998, following twenty years in manufacturing management. Chris joined Barnett & Company in 2004. He served for twelve years an adjunct professor of Finance at UTC, and writes a weekly column for the Chattanooga Times Free Press on finance and economics. He is currently president of the CFA Society of East Tennessee, and is a member of the North Carolina and South Carolina CFA Societies as well as the National Association for Business Economics. He presently serves as city council representative on the Chattanooga fire and police pension board, and is member of the finance committee for the AIM Center. Chris holds the Chartered Financial Analyst (CFA) professional designation. He received Bachelor’s degrees in Physics and Economics from California State University at Fullerton, and earned his MBA from the University of Tennessee at Chattanooga.
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