Last night the President brought up two issues that should gain bipartisan support: corporate tax rates and dealing with student loans. At 35 percent both parties agree the corporate tax rate is too high. In Bill Clinton’s new book, Back To Work, he agues the tax rate should be lowered to around 23 percent. I like President Obama’s idea even better. He wants to lower taxes for corporations who actually create jobs in America. The argument for lower taxes is to attract corporations to stay in America. However, there is no point in having a low corporate tax for a company that is just going to outsource jobs. President Obama’s plan works on two levels; it gives incentive to corporations to create jobs here and in turn increases their own profits.
This seems like it should have bipartisan support but one Republican claimed Obama’s corporate tax plan was anti-business and I don’t see how? If corporations are not hiring people in America what is the point of giving them a tax break. That will lead to either top executives becoming wealthier or further expansion outside our borders. The President’s plan is both pro-business and pro-worker.
The president also called for a change in student loans. He asked for more federal and state funding for higher education and that colleges and universities work at lowering tuition. The Romney people put out a negative ad showing Obama blamed colleges for the rising tuition in his 2010 State of the Union Address as well. I didn’t get the criticism though; last I checked tuition has been increasing and there are no signs that the trend will be reversed.
College is more expensive than ever and students are entering into a slumping economy with sometimes tens of thousands of dollars in debt. It could be argued the student loans market is a bubble about ready to pop. If nothing is done about the ever-increasing cost of college, students will default on their payments and make higher education an upper-class privilege. The only way we can expect to compete with China and other developing countries is continually increase the amount of college graduates. Education leads to higher paying jobs, greater innovation and an increase in the standard of living for a generation. Investing in education is a prudent bet with big pay offs. It would be a shame if nothing is done about student loans and the cost of college.