motorhaven - 3:13 pm on May 21, 2013 (gmt 0)
Problem is spending. If the USA didn't have such a bloated spending system there wouldn't be a need for the high tax rates it has on corporations and high income earners, and therefore not quite the level of tax law manipulation to get around it.
When I read about "its not fair", "the middle class will have to pay more", etc. I can't help but think it smacks of middle class hypocrisy. Once deductions are accounted for a middle income spectrum family of four in the USA pays an effective Federal income tax rate of 5.3%. Those in the middle fifth pay an effective rate of 11.1%.
I'll flip the question around: If "we" can pay an effective tax rate of less than 10% to about 11%, why can't large corporations also pay a lower rate like that?