A bad idea: Raising the corporate tax

A provision in the Senate’s value-added tax bill that would raise the corporate income tax is a bad idea coming at a very bad time.

The proposal calls for raising the corporate tax to 35 percent from 32, with a sunset clause reverting to the earlier rate by 2009. Proponents said the higher corporate tax would help compensate for forgone potential revenues brought about by the Senate’s decision to maintain the current 10-percent rate in its VAT bill.