News From Terre Haute, Indiana

Local & Bistate

January 23, 2014

Rep. Larry Bucshon touts tax code revision

Congressman says people feel rates too high

TERRE HAUTE — A revision in the federal tax code is needed as complicated deductions, especially for large corporations, have resulted in tax disparities, said U.S. Rep. Larry Bucshon, R-Newburgh.

“We are at a point where people, I think, depending on your income level, think that the tax rates are starting to get too high,” Bucshon said. “I would agree with that; however, I would also say the complicated deduction process, one that not everybody has the opportunity to participate in, is a huge problem.”

Bucshon was in Terre Haute on Thursday to participate in the grand opening of a new building for a tax company.

Andy Stadler, president of Stadler & Co. Tax Service, said the company invested $2 million in its new 50,000-square-foot building at the corner of Erie Canal Road and Margaret Avenue,” Stadler said. “We have a phase two that we are wanting to do, which will probably start in the next 12 to 18 months. We will be adding on another 15,000 square feet to the north side of the building.”

Bucshon, after the grand opening ceremony, said complicated tax deductions and tax credits are a disadvantage to small business.

He said Limited Liability Corporations, or LLCs, as well as Subchapter S corporations pay a business tax through the individual “personal tax code. So the corporate tax code really, to a certain extent, disadvantages small businesses because their tax rates could be 391⁄2 percent,” Bucshon said, while a large corporation has a lower rate because of more deductions.

“On the corporate tax side, we need to get the overall rates down for everyone. We need to address the disparities in what small businesses have to pay when they are pass throughs and put them on a more level playing field with larger companies. But also we have to clean out the underbrush in the corporate tax code to make sure that people who owe taxes, pay taxes,” he said.

Tax credits and deductions can result in some larger companies “not to pay an effective tax rate,” he said.

Bucshon said he also thinks the United States needs to become competitive worldwide by establishing a territorial tax system. The idea is to shift from a tax system where U.S. companies pay a U.S. tax on their worldwide income to one where they would pay the U.S. tax only on what they earned in the U.S.

Currently, Bucshon said, when a U.S. company earns a profit in a lower-tax country, on money that has already been taxed, and seeks to move that money back into the United States, the company is taxed again at the higher U.S. rate.

However, multinational companies based in territorial countries pay only the local tax rate on profits. All countries, Bucshon said, have rules to protect their domestic corporate tax base and curb income shifting.

“We have trillions of dollars in profit from U.S.-based companies that is sitting outside our country which can’t be used to expand businesses in the United States. We are the only developed country in the world that does that,” Bucshon said.

“Everybody else has created a territorial tax system to allow their companies to move their profits around through their company,” he said.

“The corporate tax situation is something that is going to have to be addressed if we are going to stay competitive. That is just the reality,” Bucshon said.

Reporter Howard Greninger can be reached at 812-231-4204 or howard.

greninger@tribstar.com.


 

1
Text Only | Photo Reprints
Local & Bistate
Latest News
TribStar.com Poll
AP Video
Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Rodents Rampant in Gardens Around Louvre US Ready to Slap New Sanctions on Russia Easier Nuclear Construction Promises Fall Short Girl Struck by Plane on Florida Beach Dies Judge OKs Record-setting $2B Sale of Clipper Mother of 2 Makes NFL Cheerleading Squad at 40 Kerry: Humanitarian Cease-fire Efforts Continue Raw: Earthquake Rocks Mexico's Gulf Coast Raw: Massive Dust Storm Covers Phoenix UN Security Council Calls for Gaza Cease-fire House to Vote on Slimmed-down Bill for Border Today in History for July 29th Traditional African Dishes Teach Healthy Eating Kerry: Not Worried About Israeli Criticism Raw: Airstrike Shatters Fragile Calm in Gaza Boater Rescued From Edge of Kentucky Dam
NDN Video
Weird 'Wakudoki' Dance Launches Promotional Competition Two women barely avoid being hit by train Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening Chapter Two: Designing for Naomi Watts NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show' Robin Wright Can Dance! (WATCH) She's Back! See Paris Hilton's New Carl's Jr. Ad Big Weekend For Atlanta Braves In Cooperstown - @TheBuzzeronFox Chapter Two: Becoming a first-time director What's Got Jack Black Freaking Out at Comic-Con? Doctors Remove 232 Teeth From Teen's Mouth
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -

     

    March 12, 2010

activity