Mary Bell, of Lambertville
President Barack Obama is proposing we reduce the corporate tax rate from 35 percent to 28 percent — claiming loopholes will be ended that led many corporations to pay far less but that now will pay far more.
But what you see is not what you get in this proposal. Joe and Joanna Main Street are about to get kicked to the curb.
First, the administration wants to institute a global tax on the earnings of U.S. businesses abroad. This would only encourage more and more American corporations that earn more and more of their income abroad to leave the United States. Good-paying jobs will go with them. Many of these jobs will be in pharmaceutical and financial services locally.
Then there’s a proposal to massively increase the tax on corporate dividends — the money paid to shareholders. President Obama wants the rate to go from 15 percent to as high as 64.1 percent, reports The Wall Street Journal. That is right: 64.1 percent.
Aside from destroying many retirees’ income streams through higher income taxes, dividends, if issued at all, would plummet. Stock prices would fall. Everything from mutual funds to pensions would be affected. All told, The Journal estimates about 100 million-plus shareholders would be affected.
And President Obama wants the top tax bracket on ordinary income to jump from 35 percent to 40 percent (or higher in the case of the self-employed).
America cannot afford President Obama’s policies. Whatever is left of prosperity in America will be ended in the next Obama administration.

