The United States has been facing some of the worst economic times since the Great Depression in the 1930’s. One option to fix the economy is to change the corporate tax rate. To lower it or to raise it, that is the question about which economists have been speculating. America's high corporate tax rate and the worldwide system of taxation discourages U.S. companies from repatriating their foreign-source profits (Camp). There is a controversy about whether lowering or raising corporate tax rates will help American businesses and the United States government, lowering corporate taxes will create more jobs in corporations while raising taxes will create more jobs in the bureaucracy, However is it pointless to worry about taxes if loopholes
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Recently, US corporations have preferred to move overseas to countries with lower tax rates, called tax havens, to keep themselves economically competitive with other corporations headquartered across the globe. A tax haven is a geographic entity that offers foreign corporations and individuals relatively low corporate and personal income tax rates in a politically and economically stable environment. Some tax havens are Switzerland, Bermuda, Hong Kong, and Ireland. Although the businesses have moved across seas, the United States forces them to pay the corporate tax. Fortunately for the businesses, if they keep their income and money overseas they do not have to the pay the American corporate tax.
One proposal for the lowering of taxes in the United States is Herman Cain’s 999 Plan. Herman Cain is a Republican politician running for president in the year 2012. The 999 Plan is a tax reform plan that would change personal income tax, national sales tax, and corporate sales tax all to nine percent. (Astor) The argument for the plan is that it would strengthen the economy and create jobs because it would lower taxes by 26 percent on businesses, therefore giving them incentive to start hiring. By paying lower taxes corporations will have more tax flow that they can invest in themselves. Also corporations would be more willing to bring their profits home due to the lower tax rate, creating