This weeks humor can be found in both the Republican and Democratic proposals to stimulate the economy by lowering the Corporate tax rate.

In case anyone was not paying attention this is an election year.  That translates to whatever the Democratic President might propose which, could include motherhood and apple pie,  will not be acted upon by the Republican Congress.  Whatever the potential Republican candidates might propose will be designated as campaign rhetoric and will not be taken seriously either.  End result no changes to the tax code are possible before the end of 2013.

A brief listen to the proposals has each of the candidates jousting to a lower rate of 25-28%, with a simultaneous magical change to the tax code that would eliminate all of the embedded loopholes and subsidies..

Even though the top corporate rate is currently 35% the big question here is what is the effective rate currently being paid by Americas top companies.  The short answer dependent on the industry is between 10% and 20%.  So the truth of the matter would be that all of the proposals for a reduced rates are actually tax increases.

I am going to have to go back and reread “1984” to find out what doublespeak really means.