Is taxing to fund government 'largeness' short-term thinking?

• Author: Heffes, Ellen M.
• Position: Editor's page - Editorial

Here in the Northeast, we're anticipating a typically sunny June as more "green" appears on trees and grass-covered lawns. Coincidently, some organizations are finally starting to see their own green, as economic activity has picked up some from its lowest ebb a bit more than a year ago.

Though still not "vibrant," even this meek growth is better than none. As financial executives begin to emerge from hibernation and plan forward instead of day to day and week to week, they naturally will be assessing and analyzing all the costs of their businesses. During the recent recession--which economists say we've left behind--companies were searching every nook and cranny to eliminate waste and redundancy, and even shed some much-needed personnel, unfortunately keeping the national unemployment rate over 9 percent. But one item CFOs don't have much sway over is paying taxes--it's a must-do.

Yet, if the current administration and Congress have their way, taxes and the cost of running a business will increase, paying for even more government-sponsored programs. Is that short-term thinking?

Our cover story, by two tax experts from Amper, Politziner & Mattia, focuses on corporate tax systems in the United States and the other major industrialized countries, and questions whether the high U.S. tax rates and policies are stifling American companies' ability to successfully compete in the global economy. Are U.S. companies at a competitive disadvantage with their global counterparts?

In another feature, an attorney with law firm Alston & Bird LLP writes about the latest developments in executive compensation. Driven largely by turbulent times and enhanced activist shareholder scrutiny, an evolution is occurring both this year and...