Among those in attendance were former U.S. Federal Reserve Bank Chairman Alan Greenspan; Martin Feldstein, professor of economics at Harvard University and former chairman of the President's Council of Economic Advisors; Michael Boskin, professor of economics at Stanford University and former chairman of the President's Council of Economic Advisors; and executives from FedEx, Oracle, and Caterpillar.

A Treasury report illustrates that the U.S. average statutory corporate tax rate is 39% when considering both federal and state income taxes, the second-highest among industrialized nations in the Organisation for Economic Cooperation and Development (OECD), second only to Japan, and Japan is preparing to lower its rate. And while many companies pay a much lower tax rate, that reduction is due to tax deductions and credits which, as Paulson points out, distort economic decisions with special provisions that encourage businesses to make decisions based on favorable taxation and encourage investment in tax-favored activity.

In a recent editorial that appeared in The Wall Street Journal, Paulson praised President Ronald Reagan's 1986 tax reformations, stating, "The 1986 tax reform recognized that if there is a prescriptive role for business tax policy, it is to free companies to put capital to its best use, which is essential to grow and sustain higher standards of living for U.S. workers. In stead of building on the proven success of these reforms, we have moved in the opposite direction, making the code more complex, adding narrow provisions that crate or respond to current headlines."

A background paper issued by the Treasury Department last week, listed some tax breaks that, if eliminated, would allow the overall top corporate tax rate to be cut from the current 35 percent to 27 percent with no loss in revenue to the government. The preferences included on the Treasury Department list are:

Attendees at the conference reached agreement that the current U.S. tax system is hurting America's ability to compete against other nations with lower corporate tax rates. "There is a strong consensus that our business tax system is far from optimal and is undermining the competitiveness of American workers," said Paulson.

Corporate leaders in attendance at the one-day conference agreed that they would be willing to sacrifice certain tax benefits in exchange for a lower overall corporate tax rate. Paulson has pledged to follow up with suggested improvements, changes, and proposals in the coming months.

J St. Clair , 17 August 2007 @ 17:16 PM  Tax Overahall - Should be changed for individuals nor Corporations "Compete against other nations" - what does this really mean? - American corporations are choosing the have work done by other countries (probably a government program to keep alliance with foreign nations) and corporations want a tax break for this? - this is putting a very large stress on our countries deficit. It would be better to eliminate individual taxes rather than corporate taxes - corporations already get the benefits of being a public corporation - getting funds from us individual investors. Since Republicans don't believe in taxes - there should be no taxes on us individuals beginning with federal, state, along with all purchases made as well as telecommunications, energy, and yearly tax filings. ALL Taxes s/b eliminated!!!!!!!!!! The Republican belief :)

J St. Clair - CITIZEN, CALIFORNIA , 01 August 2007 @ 18:46 PM  Comments on tax reform Deduction for U.S. production activities - THIS IS FINE AS IT WILL PROMOTE MANUFACTURING IN UNITED STATES Exclusion of interest on state and local bonds THIS IS NOT OK AS STATE & LOCAL BONDS ARE PRIMARILY PURCHASED BY MULTINATIONALS AND COMPANIES WHICH HAVE FEDERAL CONTRACTS - THEY SHOULD NOT GET CREDITS FOR ANY INTEREST EARNED. Research and experimentation (R&E) tax credit - NO - THERE ARE FAR TO MANY EXCEPTIONS FOR R&D ALREADY - AND AGAIN - IT SHOULD NOT APPLY FOR ANY FEDERAL CONTRACTS OR INITIATIVES Deferral of income from controlled foreigh corporations - NO THIS WILL ONLY PROMOTE COMPANIES TO CONTROL THEIR INCOME IN FOREIGN LANDS Low income housing tax credit - WHO IS CONCERNED ABOUT LOW INCOME PEOPLE: DID YOU HEAR THAT IN GERMANY THEY WANT TO GIVE EVERY CITIZEN A GAURANTEED INCOME OF 1500 EUROS WHETHER THEY WORK OR NOT? - THIS MAY BE A GOOD PROGRAM TO CONSIDER Exclusion of interest on life insurance savings - NO INSURANCE MARKET TODAY IS ALREADY A MONEY HOARDING AND RATE RAISING INDUSTRY - THIS WILL JUST KEEP RATES GOING UP - MOST PEOPLE USE INSURANCE COMPANIES TO BRING IN MONEY FOR DIFFERENT VENTURES. Inventory property sales source rules exception Special ESOP rules Exemption of credit union income New technology credit - WHERE IS THE US? ONLY! THE TAX REFORMS ARE NOT INTERNATIONAL ANYWAY SO LETS JUST DEAL WITH UNITED STATES Special Blue Cross/Blue Shield deduction - NO -FREE MARKET SHOULD ALLOW ALL INSURANCE COMPANIES - THIS IS PROBABLY MORE FOCUSED ON GOVERNMENT BENEFITS? LIKE MEDICAL/MEDICAID - WHO FUNDS THESE PROGRAMS? Excess of percentage over cost depletion, fuels - DON'T KNOW WHAT THIS IS