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Tax Two Step

Recorded on February 23, 2012

From The Heritage Foundation, I’m Ernest Istook.

Politicians often dance a little two-step. First, they announce something that grabs positive headlines—like lower tax rates. But their second step then adds something that undoes the good part, but gets ignored by the media.

President Obama’s plan to lower corporate tax rates is a prime example. We make companies pay higher taxes than any other major country, and that drives jobs overseas. So a lower tax rate is good.

But the second part of Obama's plan takes away so many tax deductions that companies will end up paying more taxes than they do now.

Obama also wants to tax profits brought back from overseas—which means companies will just keep their profits overseas and invest that money there.

Lower corporate taxes would help our economy—but not with the extra fine print Obama wants, that would hurt business worse than ever.

From The Heritage Foundation, I’m Ernest Istook.