It's Time to Lower Corporate Taxes

[CultureCitizen]

America is uncompetitive from a tax standpoint. We have the highest corporate tax rate in the world. American companies are choosing to relocate abroad because we have become so uncompetitive.

Sory to wake you up to the reallity of global economy. Companies are not going abroad "only" because of taxes, but because labour and natural resources are cheaper.

Bringing taxes down to 15 or zero does not guarantee they will be comming back.

The fact that inequallity is in the rise in the us should tell you something about the direction in which the wealth is flowing.

Income inequality in the United States - Wikipedia, the free encyclopedia

China's Dominance in Manufacturing?in One Chart - Matt Schiavenza - The Atlantic

America is in dire need for stronger and more pervasive education. It is innovation which have made it a top-notch country not : corporate discounts...

 

[Mad Scientist]

2) free of the tax our industries would be more competitive.

Could I also add:
"free of the tax our People would be more Free".

It's fine that Boeing pays 4.6% Tax if I can have that rate too!

but you do in effect!! The less they pay in taxes the less their airplanes cost and the cheaper it is for you to fly!

Two or even three cheap airline tickets doesn't equal my yearly taxes.

 

[EdwardBaiamonte]

.

The fact that inequallity is in the rise in the us should tell you something about the direction in which the wealth is flowing.

eliminating the liberal corporate taxes would go a long way to bring back our industries!! Further you could eliminate the liberal unions that drove out 40 million jobs. Then you could stop the liberal attack on the American family and schools that renders people unfit to hold a middle class jobs! Now you understand inequality.

Also, you could ask liberals to disinvite 20 million illegals who took 20 million of our jobs!

 

[EdwardBaiamonte]

Could I also add:
"free of the tax our People would be more Free".

It's fine that Boeing pays 4.6% Tax if I can have that rate too!

but you do in effect!! The less they pay in taxes the less their airplanes cost and the cheaper it is for you to fly!

Two or even three cheap airline tickets doesn't equal my yearly taxes.

what????

 

[CultureCitizen]

.

The fact that inequallity is in the rise in the us should tell you something about the direction in which the wealth is flowing.

eliminating the liberal corporate taxes would go a long way to bring back our industries!! Further you could eliminate the liberal unions that drove out 40 million jobs. Then you could stop the liberal attack on the American family and schools that renders people unfit to hold a middle class jobs! Now you understand inequality.

Also, you could ask liberals to disinvite 20 million illegals who took 20 million of our jobs!

Edward,
Illegals are taking the "lowest" paid jobs...I am not sure if reclaiming them is the wisest of propositions. Second , there isn't a 1-1 relationship between ilegals and jobs ... you see, they tend to have family so the figure must be closer to 6 million jobs.

Unions have been on a steady decline , so they are not to be blamed for this increase in inequality.

Income inequality in the United States - Wikipedia, the free encyclopedia

Corporate proffits and CEO compensations have been on a steady rise . Good for them, but I do feel hard pressed to see the causal link between tax reduction and the bountifull America you describe given the already soaring corporate proffits.

U.S. corporate profits soar in 2012. Workers get little of it. - The Tell - MarketWatch

 

[EdwardBaiamonte]

Edward,
Illegals are taking the "lowest" paid jobs...I am not sure if reclaiming them is the wisest of propositions. Second , there isn't a 1-1 relationship between ilegals and jobs ... you see, they tend to have family so the figure must be closer to 6 million jobs.

1)some estimate there are far more than 20 million here. Most who cross the border are males looking for work. In any case 6-25 million jobs stolen is a lot given unemployment is only 8 million. If those jobs were open you have upward pressure on wages. live and learn

 

[EdwardBaiamonte]

Unions have been on a steady decline , so they are not to be blamed for this increase in inequality.

steady decline but still deadly to jobs here; a huge threat. Thats why auto companies come here and still go south where unions wont ruin things again but even there is huge threat. Who needs that hassel when you can go to Mexico or China. You see Boeing just had huge fight trying to escape unions and go south.

 

[EdwardBaiamonte]

Corporate proffits and CEO compensations have been on a steady rise . Good for them, but I do feel hard pressed to see the causal link between tax reduction and the bountifull America you describe given the already soaring corporate proffits.

are you nuts?? Ireland dropped their corporate rate to 12% and most major corporations moved there in part anyway for the low taxes. USA has highest tax in world at 40%
They have a duty to customers and owners to move out, amd many ,many say they do. Walgreen is in paper just today. Medtronic last week. Ireland id full of them. Liberals cause this out of pure ignorance.

Most importantly inequality comes from liberal destruction of American family and schools.
Why not make liberalism illegal since it is such a cancerous presence here?

 

[Dad2three]

Our nominal corporate tax rate is around 35%, but it's a pointless number compared to the effective tax rate. Corporate taxes account for around 1.3% of GDP, while most other industrialized countries are at 2.5% of GDP. FYI, the GAO found that 55% of US companies paid ZERO federal income taxes during at least one year over a seven-year period. This was back 2008 if I recall. With that being said, I have no problems closing loopholes and getting rid of useless parts of the tax code.

The "effective" tax rate is the "average" effective tax rate. Many companies pay much higher than than the effective rate, which is somewhere between 12% and 23%, depending which study one uses.

The reason why we have a lower effective tax rate is because our current tax rates and system incentivizes companies to go offshore. Lower it to 15% - while getting rid of the bullshit loopholes - and you'll see a lot of the offshoring stop. Companies aren't inverting for the hell of it. They are doing so because it makes perfect economic sense.

The American corporate tax system is one of the most uncompetitive tax systems in the world. Closing loopholes without lowering tax rates will just accelerate companies leaving.

As for healthcare, as a Canadian living in Canada while corporate taxes were high, Canadian Medicare did exactly zero to stop companies from leaving Canada and reincorporating elsewhere in the 1990s. It was the Liberal government which began cutting corporate taxes in Canada because they could see the damage it was causing to Canadian business.

MORE (NOT) a right winger crap

Corps don't move jobs overseas because of taxes, they do it for the $1 an hour labor. Get honest 1 time


Effective taxes are at 40+ year lows, ON RECORD US PROFITS. Not much chance of Walmart, McD's, etc moving offshore for that $1 and hour labor is it? THE VAST MAJORITY OF CORP PROFITS ARE IN THE USA


Obama proposed, and the GOP SAID NO, to a 28% tax rate and getting rid of loopholes and using revenues to rebuild US infrastructure!

 

[CultureCitizen]

Edward,
Illegals are taking the "lowest" paid jobs...I am not sure if reclaiming them is the wisest of propositions. Second , there isn't a 1-1 relationship between ilegals and jobs ... you see, they tend to have family so the figure must be closer to 6 million jobs.

1)some estimate there are far more than 20 million here. Most who cross the border are males looking for work. In any case 6-25 million jobs stolen is a lot given unemployment is only 8 million. If those jobs were open you have upward pressure on wages. live and learn

And yet, there are lots of open jobs for skilled people. It is a waste of time trying to fight the market. Those illegals were brought here by market forces : the same market forces that took many jobs to China. Supply and demand.

Better education for every single American is a better alternative.

Yes, yes , the borders "could" be sealed to help alleviate the problem, it is protectionist and fight against the market nevertheless.

 

[Dad2three]

Corporate proffits and CEO compensations have been on a steady rise . Good for them, but I do feel hard pressed to see the causal link between tax reduction and the bountifull America you describe given the already soaring corporate proffits.

are you nuts?? Ireland dropped their corporate rate to 12% and most major corporations moved there in part anyway for the low taxes. USA has highest tax in world at 40%
They have a duty to customers and owners to move out, amd many ,many say they do. Walgreen is in paper just today. Medtronic last week. Ireland id full of them. Liberals cause this out of pure ignorance.

Most importantly inequality comes from liberal destruction of American family and schools.
Why not make liberalism illegal since it is such a cancerous presence here?

YOU are an idiot. Corp MARGINAL rates are 35%

IRELAND MUST BE BOOMING RIGHT? lol

 

[Dad2three]

http://www.usmessageboard.com/economy/178090-tax-cuts-create-jobs.html

Sure they do, lol

Dubya and Reagan proved it right? lol

 

[Dad2three]

Yes, I know. I read it. Something like a third of large corporations paid no taxes at all for much of the 00s.

You want lower Corporate Taxes but you also want to raise Boeings' Taxes?

What am I missing here?

The first question I would ask is if the 4.6% income tax paid include taxes paid to foreign governments? If it does not, it's a bogus number. But admittedly, I don't know if it does or not.

The United States is the only country that I am aware of which taxes income on foreign earnings, even if the transaction had nothing to do with the United States. If Exxon drills for oil in Africa then sells it to Europe, that income should not be subject to US tax. That should be eliminated.

Some of the tax gimmicks which shield income, however, should be eliminated. For example, intra-company transfer of technology offshore at so-called market values is a joke and should be stopped.

26 top American corporations paid no federal income tax from ’08 to ’12 – report


The report, conducted by public advocacy group Citizens for Tax Justice (CTJ), focuses on the 288 companies in the Fortune 500 that registered consistent profit every year from 2008 to 2012. Those 288 profitable corporations paid an “effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate,” CTJ states.

One-third, or 93, of the analyzed companies paid an effective tax rate below 10 percent in that timespan, CTJ found.


To reverse low corporate federal tax rates, CTJ recommends Congress end corporations’ ability to "defer" taxes on offshore profits; limit use of executive stock options that reduce taxes by "generating phantom 'costs'” the companies don't really incur; end accelerated depreciation opportunities; restore the corporate Alternative Minimum Tax; and strengthen corporate income and tax disclosure regulations.

“These findings refute the prevailing view inside the Washington, D.C. Beltway that America’s corporate income tax is more burdensome than the corporate income taxes levied by other countries, and that this purported (but false) excess burden somehow makes the U.S. ‘uncompetitive,’” CTJ concluded.



?26 top American corporations paid no federal income tax from ?08 to ?12 ? report ? RT USA


Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High

 

[Dad2three]

It's not enough. We need to restructure our entire tax code. Move to a flat or near flat rate with very few (if any) deductions for business and for individuals/families. Under this system Filing taxes would be as simple as ordering from Amazon.

And regressive

 

[CultureCitizen]

Corporate proffits and CEO compensations have been on a steady rise . Good for them, but I do feel hard pressed to see the causal link between tax reduction and the bountifull America you describe given the already soaring corporate proffits.

are you nuts?? Ireland dropped their corporate rate to 12% and most major corporations moved there in part anyway for the low taxes. USA has highest tax in world at 40%
They have a duty to customers and owners to move out, amd many ,many say they do. Walgreen is in paper just today. Medtronic last week. Ireland id full of them. Liberals cause this out of pure ignorance.

Most importantly inequality comes from liberal destruction of American family and schools.
Why not make liberalism illegal since it is such a cancerous presence here?

Edward , I am most certainly not "nuts".
I posted a link to an an article showing how in spite of an increase of corporate proffits, the beneffits for employees has been close to zero.

Now, there is only a certain amount of hot air I can withstand as a part of a debate. Show me an actual link and we'll cary on with the discussion.

Here comes mine: Chinese labour plus automation have reduced the market for menial tasks. Once again corporations are having increased proffits, but where are those proffits being invested? Your bet is that lower taxes would make them invest more in America ... sounds nice in theory. I say it's a wild bet, because there are other forces at play.

Bash Brothers: How Globalization and Technology Teamed Up to Crush Middle-Class Workers - Derek Thompson - The Atlantic

 

[EdwardBaiamonte]

Edward , I am most certainly not "nuts".
I posted a link to an an article showing how in spite of an increase of corporate proffits, the beneffits for employees has been close to zero.

dear what you say is true!! When corporations move out they can pay Americans less. They move out to keep their profits not to share them with employees! Do you understand now?

 

[EdwardBaiamonte]

Your bet is that lower taxes would make them invest more in America ... sounds nice in theory. I say it's a wild bet, because there are other forces at play.

dear, there are still millions of corporations here with some moving out all the time
.Common sense will tell you that if they can go to Ireland to pay a 12% tax or stay here and pay a 40% tax that is more incentive to move out not to stay in. Do you understand now? Do you think its coincidence that when Ireland dropped to 12% everyone moved there?

 

[EdwardBaiamonte]

It's not enough. We need to restructure our entire tax code. Move to a flat or near flat rate with very few (if any) deductions for business and for individuals/families. Under this system Filing taxes would be as simple as ordering from Amazon.

And regressive

a guy who earns 1 millin pays 150K while a guy who earns 25k pays $3750.

So it takes the poor guy an entire life time to contribute what the rich guy contributes in one year!! Is that fair?

 

[CultureCitizen]

Your bet is that lower taxes would make them invest more in America ... sounds nice in theory. I say it's a wild bet, because there are other forces at play.

dear, there are still millions of corporations here with some moving out all the time
.Common sense will tell you that if they can go to Ireland to pay a 12% tax or stay here and pay a 40% tax that is more incentive to move out not to stay in. Do you understand now? Do you think its coincidence that when Ireland dropped to 12% everyone moved there?

Everyone ? Links , references, figures? How big was the move ? how many Irish employments were created?

 

[Kimura]

Our nominal corporate tax rate is around 35%, but it's a pointless number compared to the effective tax rate. Corporate taxes account for around 1.3% of GDP, while most other industrialized countries are at 2.5% of GDP. FYI, the GAO found that 55% of US companies paid ZERO federal income taxes during at least one year over a seven-year period. This was back 2008 if I recall. With that being said, I have no problems closing loopholes and getting rid of useless parts of the tax code.

The "effective" tax rate is the "average" effective tax rate. Many companies pay much higher than than the effective rate, which is somewhere between 12% and 23%, depending which study one uses.

The reason why we have a lower effective tax rate is because our current tax rates and system incentivizes companies to go offshore. Lower it to 15% - while getting rid of the bullshit loopholes - and you'll see a lot of the offshoring stop. Companies aren't inverting for the hell of it. They are doing so because it makes perfect economic sense.

The American corporate tax system is one of the most uncompetitive tax systems in the world. Closing loopholes without lowering tax rates will just accelerate companies leaving.

As for healthcare, as a Canadian living in Canada while corporate taxes were high, Canadian Medicare did exactly zero to stop companies from leaving Canada and reincorporating elsewhere in the 1990s. It was the Liberal government which began cutting corporate taxes in Canada because they could see the damage it was causing to Canadian business.

The US has the third lowest corporate tax burden in the world right behind France and zee Germans. The global average is 2.8%

In other countries, many small firms pay personal income and corporate tax. In essence, despite what our friends at CATO and the Heritage Foundation tell us, business owners in many of these countries with a lower tax rate may ending paying more $$$$ than their US counterparts. The US has another advantage than other countries with lower tax rates: we don't get hit with a VAT, a super regressive and douchy tax, on the same level as FICA.

In terms of health care, for example, Canadian firms don't have to worry about health care being a marginal cost of production. That was my point, not whether or not Canadians firms may choose to relocate south of the border or elsewhere.