Republican Congressman Louie Gohmert of Texas introduced legislation to the House of Representatives on Wednesday that would drop the corporate tax rate to all the way down to zero.
The two-paged bill, called the American Jobs Act of 2011 — the same name President Barack Obama gave to his jobs package — would amend the Internal Revenue Code of 1986 to repeal the corporate income tax.
“We have heard a lot of rhetoric about job creation from President Obama over the last several days,” Rep. Gohmert said in a statement. “After waiting to see what the President would actually put into legislative language, and then waiting to see if anybody would actually introduce the President’s bill in the House, today I took the initiative and introduced the ‘American Jobs Act of 2011.’
“It is a very simple bill, which will eliminate the corporate tax which serves as a tariff that our American companies pay on goods they produce here in America.”
Gohmert claimed that dropping the current corporate tax rate of 35 percent down to zero would prevent manufacturing jobs from being shipped overseas, promote capital investment and attract businesses to America.
The liberal blog ThinkProgress noted that increasing the revenues of corporations was unlikely to stimulate job growth, since they are already sitting on trillions in cash.