Geithner: U.S. Needs To Massively Cut Corporate Taxes!

This is quite something. Just one day after the White House unveiles a budget that seeks to really cut the country's massive deficit, Tim Geithner says that Congress has to work overhaul the tax code, and reduce corporate taxes substantially!.

Geithner said that the United States needs to cut the corporate tax rate to the high 20% range, down from the current 35%.

"We are very serious... in trying to build consensus now on a set of fundamental changes to the corporate tax system that would improve incentives for investment," "The average rate of our major trading partners now is in the high 20s and... to make it meaningful you want to get it down substantially toward that level,"

Reuters: "Obama's own fiscal deficit commission recommended cutting the top corporate rate to between 23 and 29 percent, while trimming business tax breaks.

The president did propose squashing some of these breaks in his 2012 budget, but the ideas have failed to garner support in Congress for several years.

A big stumbling block is that Obama wants to overhaul corporate taxes without adding to the deficit, expected to top $1.5 trillion this year. That will create inevitable winners and losers in the business community, dragging out the process".