JimofPennsylvan
Platinum Member
- Jun 6, 2007
- 862
- 506
Republicans ought to pursue the deal President Obama and the Democrats are offering on reforming the corporate tax code, if the terms are set right it isn't a bad deal and most importantly it helps America a lot! This is the Democrat deal that they will agree to close loopholes in the corporate tax code to lower overall corporate tax rates to 28% for non-manufacturing corporations and 25% for manufacturing corporations as long as the closing of loopholes generates significant revenue that will be used on infrastructure spending. Republicans this is why it is a good deal and it is not because it will create a lot of infrastructure construction jobs this writer is with you the Federal government has to get out of the job creation business because their terrible at it they waste too much money the 2009 stimulus legislation is a perfect example and it would still be a good deal even if the unemployment rate was five and a half percent or lower; it is a good deal because across the nation states need money to spend on road and bridge construction and public transportation. In states across the country the government is woefully failing in its duty to maintain and build needed roads, bridges and public transportation!
This writer is from southeastern Pennsylvania so I am well familiar with the states of Pennsylvania and New Jersey and the public in my community is inundated with news reports how these states aren't and don't know how to fulfill their transportation infrastructure needs. Maybe I am wrong but my sense of things is that this need exists across the nation and state capitols from coast to coast are loath to raise taxes because their publics don't want it. This corporate tax code deal is the magic elixir that gets this country out of this transportation infrastructure crisis for the next decade! On a related note Congressman Gerlach, Meehan, Fitzpatrick, LoBiondo and Pitts you're from my region you know crystal clearly of your district's "desperate" transportation infrastructure needs; you are derelict in your duty as Congressional representatives in not coming out in favor of this deal which could bring crucial help for this problem, you're all acting like a bunch of bums!
Let's look at why the Republicans are against this deal. They want to lower the "top" personal income tax rates with the corporate tax rate because they say a lot of small business declare their income and pay taxes under the personal income tax code so it would be unfair to lower income taxes for corporate businesses and not non-corporate businesses. This is a very immature and unwise stance this position that let us not help a huge number of people unless we can help everyone is so small minded help these corporate businesses now and fix the small businesses tax problem later. Plus not only do we help corporate tax filers with this deal this change would incentivize these businesses to create jobs in the U.S. instead of outside the U.S. so a lot of ancillary benefits would fall to many ordinary Americans as a result of this change because they would receive the benefit of a job! Further, reform of the corporate tax code will likely significantly lower the tax rate on foreign earned profits which currently gets parked by corporations outside the U.S. to avoid paying taxes on this money this change will result in these foreign profits returning to the U.S. and creating economic activity in the U.S. a valuable benefit.
Further, you Republicans against this deal are missing an opportunity to help small businesses compared to the situation as it exists today. By this I mean, these small businesses that pay under the individual tax code pay high tax rates on "all" their income if the corporate tax code was changed as the Democrats offer than a small business owner will be able to shield some of his profits from the full force of federal taxation and use it to build his business and prosper! For example, let us say a small business owner who pays taxes under the individual tax code has a net income of $475,000.00 today that filer has to subject that whole amount of money to the full force of the federal individual income tax rates. If the tax code was changed as proposed by the Democrats this small business owner could reorganize as a corporation and pay his taxes under the corporate tax code he could pay 223,000 of the 475K as a salary to himself which would require him to pay individual income tax rates on this money. But this is the kicker he could leave the $252,000 in the corporation not pay it to himself as a dividend and save quite a lot of money which he could reinvest in the business. This is so because under the change the business owner would only pay a tax rate of 28%, the new corporate tax rate, on these monies where if he declared everything under the individual tax code he would pay 33% on the first 176 K and 35% on the next $51,000 and 39.6 on the next $25,000. President Obama is never going to agree to lower the top tax on the wealthy from 39.6 % which he just achieved this year so at the earliest assuming the Republicans win the White House in 2016 is they can lower all rates in 2017 if they take this Democrat they can in the interim help small business as described otherwise they get nothing for these businesses, this is basic common sense Republicans take the deal it helps the people you want to help!
Lastly, the Republicans rationale for rejecting this deal has real shortcomings their rationale is that it doesn't help small businesses that file under the individual income tax code, most of these taxpayers are wealthy Americans. For taxpayers making under $100,000 per year which is the majority of citizens in America it is hard to feel sympathy for these taxpayers when we are struggling so financially; it isn't good politics Republicans to be so identified as champions for the wealthy in America! On a little different topic, why don't the Republicans in this deal only agree to divert the extra revenue created by closing the corporate tax loopholes not going to reducing rates for transportation infrastructure spending for "ten" years that way when they hopefully get the White House in 2016 they can then pass legislation diverting these monies coming in after ten years to lowering individual tax rates in 2023, that way they are achieving their goal it is just not at the ideal time table and in the grand scheme of things ten years isn't a big deal!
This writer is from southeastern Pennsylvania so I am well familiar with the states of Pennsylvania and New Jersey and the public in my community is inundated with news reports how these states aren't and don't know how to fulfill their transportation infrastructure needs. Maybe I am wrong but my sense of things is that this need exists across the nation and state capitols from coast to coast are loath to raise taxes because their publics don't want it. This corporate tax code deal is the magic elixir that gets this country out of this transportation infrastructure crisis for the next decade! On a related note Congressman Gerlach, Meehan, Fitzpatrick, LoBiondo and Pitts you're from my region you know crystal clearly of your district's "desperate" transportation infrastructure needs; you are derelict in your duty as Congressional representatives in not coming out in favor of this deal which could bring crucial help for this problem, you're all acting like a bunch of bums!
Let's look at why the Republicans are against this deal. They want to lower the "top" personal income tax rates with the corporate tax rate because they say a lot of small business declare their income and pay taxes under the personal income tax code so it would be unfair to lower income taxes for corporate businesses and not non-corporate businesses. This is a very immature and unwise stance this position that let us not help a huge number of people unless we can help everyone is so small minded help these corporate businesses now and fix the small businesses tax problem later. Plus not only do we help corporate tax filers with this deal this change would incentivize these businesses to create jobs in the U.S. instead of outside the U.S. so a lot of ancillary benefits would fall to many ordinary Americans as a result of this change because they would receive the benefit of a job! Further, reform of the corporate tax code will likely significantly lower the tax rate on foreign earned profits which currently gets parked by corporations outside the U.S. to avoid paying taxes on this money this change will result in these foreign profits returning to the U.S. and creating economic activity in the U.S. a valuable benefit.
Further, you Republicans against this deal are missing an opportunity to help small businesses compared to the situation as it exists today. By this I mean, these small businesses that pay under the individual tax code pay high tax rates on "all" their income if the corporate tax code was changed as the Democrats offer than a small business owner will be able to shield some of his profits from the full force of federal taxation and use it to build his business and prosper! For example, let us say a small business owner who pays taxes under the individual tax code has a net income of $475,000.00 today that filer has to subject that whole amount of money to the full force of the federal individual income tax rates. If the tax code was changed as proposed by the Democrats this small business owner could reorganize as a corporation and pay his taxes under the corporate tax code he could pay 223,000 of the 475K as a salary to himself which would require him to pay individual income tax rates on this money. But this is the kicker he could leave the $252,000 in the corporation not pay it to himself as a dividend and save quite a lot of money which he could reinvest in the business. This is so because under the change the business owner would only pay a tax rate of 28%, the new corporate tax rate, on these monies where if he declared everything under the individual tax code he would pay 33% on the first 176 K and 35% on the next $51,000 and 39.6 on the next $25,000. President Obama is never going to agree to lower the top tax on the wealthy from 39.6 % which he just achieved this year so at the earliest assuming the Republicans win the White House in 2016 is they can lower all rates in 2017 if they take this Democrat they can in the interim help small business as described otherwise they get nothing for these businesses, this is basic common sense Republicans take the deal it helps the people you want to help!
Lastly, the Republicans rationale for rejecting this deal has real shortcomings their rationale is that it doesn't help small businesses that file under the individual income tax code, most of these taxpayers are wealthy Americans. For taxpayers making under $100,000 per year which is the majority of citizens in America it is hard to feel sympathy for these taxpayers when we are struggling so financially; it isn't good politics Republicans to be so identified as champions for the wealthy in America! On a little different topic, why don't the Republicans in this deal only agree to divert the extra revenue created by closing the corporate tax loopholes not going to reducing rates for transportation infrastructure spending for "ten" years that way when they hopefully get the White House in 2016 they can then pass legislation diverting these monies coming in after ten years to lowering individual tax rates in 2023, that way they are achieving their goal it is just not at the ideal time table and in the grand scheme of things ten years isn't a big deal!
