GOP debate promises spotlight on high corporate taxes, says low-tax advocate

MILWAUKEE — As the presidential candidates prep for a breakout performance in the Republican debate here Tuesday, a group pushing to lower the U.S. corporate tax rate hopes the event will give their issue an opportunity to shine.

Debate host Fox Business has promised the debate will focus on substantive issues, not the sort of “gotcha”-type questions that marred the debate last month hosted by business news network CNBC.

And James Pinkerton, co-chairman of the Rate Coalition, said that the format should favor a discussion of lowering the corporate tax rate.

“I am feeling good that corporate tax reform will come up tonight,” said Mr. Pinkerton.

The Rate Coalition consists of 35 major companies and organizations that advocate cutting the high corporate tax rate in the U.S. in order to boost the economy and job growth. The U.S. corporate tax rate of 35 percent is the highest in the industrialized world. Most country’s set the corporate rate at 25 percent.

The high tax on business has been blamed in part for the decision by major U.S. companies, including Burger King and insurance giant Aon, to re-incorporate abroad in order to lower their tax burden, a strategy known as corporate inversion.

Stopping the exodus of U.S. corporations has been a key issue among presidential candidates from both parties, though Democratic candidates have steered clear of lowering the corporate tax rate.

Rate Coalition is pushing for the U.S. to lower its rate to 25 percent, while eliminating the slew of corporate tax breaks that favor various industries.

“It was sort of striking to me that [corporate taxes] only came up in the undercard debate for CNBC,” said Mr. Pinkerton. “You would think a business network would ask the hottest question in business.”

Indeed. The corporate tax issues ranked No. 3 in an article previewing the debate that was posted Wednesday on Fox Business’s website.

Every Republican presidential candidate included a lower corporate tax rate in their tax reform plans. But there could be disagreement on the debate stage about how low the rate should be cut to make the U.S. more competitive and help jump-start the plodding economic recovery.

“That could be a potential flashpoint,” Mr. Pinkerton said.

Billionaire businessman and Republican presidential front-runner Donald Trump has called corporate inversions a “tremendous problem” and proposed lowering the rate to 15 percent.