Should we make the corporate tax rate 0%?

[kaz]

However, the tax code generally follows the same principles of accrual accounting, with some variations, i.e. straight-line v. double-declining depreciation. Depreciation should be written off over the life of the asset based on the economic usefulness of the asset. So if an asset is written off in three years but is in use for 10, that's a subsidy because it allows the company to capture an economic benefit that runs counter to the principles of the tax code.

Subsidy, what BS. For GAAP, we're good. The intent of GAAP is to portray the value of a company to an investor as best as possible. Let's say a company spends $1 Million on equipment with a 10 year life. As an ongoing entity, it makes the most sense to consider them to have spent $100K per year for 10 years and book an asset they depreciate $100K each year. That reflects the value of their investment to an investor, the intent of GAAP. I realize depreciation schedules don't work that way, I'm talking the philosophy of the investment. I'll come back to depreciation schedules.

However, taxes are to share a percent of what we earn for the benefit of society. The company spent $1M this year. They then get taxed on the whole million worth of revenue less the first year's depreciation. So they pay $1M for the equipment the first year AND taxes on $900K even though they spent it. Government is getting it's now. It's the company that has to both foot the bill for the equipment and quench the insatiable greed of government to consume immediately now. It's not only government greed, but it's stupid because government is disincentiing investment by making it more expensive.

As for depreciation schedules, you and I think of it like my example, but the reality is that you follow the depreciation schedule for an asset. The true life of the asset is irrelevant for taxes.

 

[kaz]

Gross profit is after all expenses including owner's salaries. Net profit is after taxes are paid.

Wrong, that isn't what gross profit is. Actually, the main ones are

Gross profit = sales - COGS
Operating profit = sales - operating costs
Net profit = sales - all expenses (including taxes)

There's also EBIDTA, pro-forma and a hundred more, and every company tailors those to their own business and their own needs.

Yes, you are right. Operating profit is after all expences including owner's salaries. You are right, I skipped "operating profit."

So what is your point?

You still are an idiot if you are paying double taxes on your money.

My point was that you defined gross profit wrong. Which interestingly enough is why I quoted your definition and started by saying you defined it wrong. That was meant to be a subtle hint for you.

Actually, your definition of operating margin is also wrong. It does not include "all expenses" it includes all operating costs. The definition of operating costs is not fixed. It may or may not include an owner's salary. I do not include my salary as a cost in calculating my operating profit because I do not do any operations. It's up to the company and is driven by their philosophy, structure, market, etc. They should define it to be the most beneficial for how they are operating. Other expenses that would generally not be include in operating costs would be things like interest paid or other expenses related to funding the business.

 

[Mac1958]

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I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

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[kaz]

Winner, winner....chicken dinner

There you have it

Owners take profit as capital gains or dividends rather than a salary. Because the system is set up so that they pay a lower tax rate that way

Wouldn't it be nice if employees could do the same?

There is so much ignorance in that statement, I can't possibly cover it all. I'll just give you a couple of basics.

1) Actually you'll be happy to know that government did think of that. If we work in the business, we are required to pay ourselves a reasonable salary. I pay myself 6% of my company's revenue as wages as President. Those are not double taxed at least, they are deductible expenses.

2) many small businesses are set up as "S" or "LLC" corporations. In those cases, all earnings flow through as income.

There are a lot of factors as to why all those combinations are done. You obviously don't care, you are just out to get as many hourly workers who live paycheck to paycheck fired as you can. Here's the reality. I care a lot more about my workers than you do.

Thanks. That is very informative

So I guess it shows you lied when you said owners take profit as a dividend or capital gain

You made a fallacious leap when you assumed that everything that I say about businesses is how I run my business. Here's a hint to the difference. When I start talking about "businesses" then I'm speaking in general. When I say "my business" then I'm talking about how I do it. See how that works? Pretty nifty, isn't it RW?

 

[OnePercenter]

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I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

.

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

 

[Mac1958]

.

I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

.

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Which is why I proposed a minimum.

Didn't you see that?

.

 

[boedicca]

.

I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

.

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

 

[OnePercenter]

.

I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

.

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

Walmarts effective tax for 2013 is actually 1.7%.

 

[OnePercenter]

.

I'd like to see corporate tax rates as low as possible (with a minimum percentage so none of them can get away with paying no taxes), but if Obama got 25% and we also provided tax incentives for bringing business back from overseas, tax incentives for building here, and tax DIS-incentives for building overseas, I could live with that.

.

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Which is why I proposed a minimum.

Didn't you see that?

A minimum with tax incentives?

 

[kaz]

My hands were the only ones involved.

You took a job provided by someone else and paid taxes on it once.

I earned my money myself, and paid taxes on it twice.

What's ironic is that you claim to care about labor, and labor pays for this a lot more than I do. Here's the fact whether you like it or not. My taxes are taken out of what I have to put in my business. I do not take less money for myself. When my money is taxed twice, that means there are several more people I can't afford to hire this year. People like you who live off me are unemployed still. Several more next year, ... Either way, I'm rich. It doesn't affect my lifestyle.

That you don't grasp reality doesn't protect you from reality.

You really don't have a clue what you are talking about.

By no stretch of accounting do you pay taxes on any money twice. You may have a business, but you either don't do your own accounting and taxes or you simply are clueless as to what you are doing.

He is full of shit. He hides behind a "corporation" where it helps him. Then whines when he has to pay taxes on the money he takes out of that corporation

Breaks my heart really. Poor people should have as many options

Dude, you want MORE options? WTF. Half of taxpayers pay NO taxes. If you're "poor" and work you MAKE money because you get "refundable tax credits." Exactly how much money do you want the IRS to pay you so you feel you're "paying" your fair share?

 

[kaz]

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

Walmarts effective tax for 2013 is actually 1.7%.

You need a new calculator. 8/25.7 isn't 1.7%.

So out of curiousity, exactly how much do you think the poor people who shop at Walmart should pay for Walmart's corporate taxes exactly? You realize it's built into the price of the product, just like every other cost Walmart has. Your being a "onepercenter" and all you must know basic business principles...

 

[RKMBrown]

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

Walmarts effective tax for 2013 is actually 1.7%.

You need a new calculator. 8/25.7 isn't 1.7%.

So out of curiousity, exactly how much do you think the poor people who shop at Walmart should pay for Walmart's corporate taxes exactly? You realize it's built into the price of the product, just like every other cost Walmart has. Your being a "onepercenter" and all you must know basic business principles...

You realize this "onepercenter" guy is the one who thinks he got away with an effective tax of less than 2% on over a million in revenue right? He's the one that thinks he should have been forced to pay corporate taxes on revenue not profit. But now it's starting to look like the lie was based on some dumb ass libtard article about Walmart. Apparently "onepercenter" thinks he wall-mart.

 

[Mac1958]

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Which is why I proposed a minimum.

Didn't you see that?

A minimum with tax incentives?

No, a net minimum, just as I'd like to see with personal income taxes. For example, a personal effective tax rate for the 39.6% margin might have a 20% or 25% minimum.

.

 

[Uncensored2008]

Absolutely, the 1% is just a consuming machine. Munch munch munch

Does your ignorance ever give you a headache? It certainly gives me one....

 

[kaz]

Absolutely, the 1% is just a consuming machine. Munch munch munch

Does your ignorance ever give you a headache? It certainly gives me one....

LOL. I have a building full of people I pay for their living. I have a spreadsheet to make sure I collect all the taxes that I have to pay monthly, quarterly and annually to the Federal government, State government and local government for wages, unemployment, sales, property, etc.

But I'm "just a consuming machine. Munch munch munch." Got it....

 

[Toro]

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

Walmarts effective tax for 2013 is actually 1.7%.

Where did you get that from?

The numbers that are being quoted by others here - the $8 billion - aren't actually the taxes paid. That is for taxes expensed, which isn't the same thing as taxes actually paid. Taxes expensed includes deferred taxes.

However, on the 10-K filing Walmart made to the SEC, it says they paid $7.3 billion, which isn't 1.7% of profits.

You can see the 10-K here. Under "Groupings Filter" hit "Annual Filings." It is at the bottom of the Cash Flow Statement on page 70 of the pdf.

Walmart Corporate - Information for Walmart Investors: SEC Filings

 

[thereisnospoon]

Money s taxed every time it changes hands.

1+ 1=.....

My hands were the only ones involved.

You took a job provided by someone else and paid taxes on it once.

I earned my money myself, and paid taxes on it twice.

What's ironic is that you claim to care about labor, and labor pays for this a lot more than I do. Here's the fact whether you like it or not. My taxes are taken out of what I have to put in my business. I do not take less money for myself. When my money is taxed twice, that means there are several more people I can't afford to hire this year. People like you who live off me are unemployed still. Several more next year, ... Either way, I'm rich. It doesn't affect my lifestyle.

That you don't grasp reality doesn't protect you from reality.

You really don't have a clue what you are talking about.

By no stretch of accounting do you pay taxes on any money twice. You may have a business, but you either don't do your own accounting and taxes or you simply are clueless as to what you are doing.

Oh really?
Tell ya what...Open yourself a business and come back in a year. Let us know how your tax accountant tells you how you have to bend over and grab your ankles.

 

[Bombur]

My hands were the only ones involved.

You took a job provided by someone else and paid taxes on it once.

I earned my money myself, and paid taxes on it twice.

What's ironic is that you claim to care about labor, and labor pays for this a lot more than I do. Here's the fact whether you like it or not. My taxes are taken out of what I have to put in my business. I do not take less money for myself. When my money is taxed twice, that means there are several more people I can't afford to hire this year. People like you who live off me are unemployed still. Several more next year, ... Either way, I'm rich. It doesn't affect my lifestyle.

That you don't grasp reality doesn't protect you from reality.

You really don't have a clue what you are talking about.

By no stretch of accounting do you pay taxes on any money twice. You may have a business, but you either don't do your own accounting and taxes or you simply are clueless as to what you are doing.

Oh really?
Tell ya what...Open yourself a business and come back in a year. Let us know how your tax accountant tells you how you have to bend over and grab your ankles.

If you own your own business it would likely be a pass through entity or "flow through entity"

Flow-through entity - Wikipedia, the free encyclopedia

 

[kaz]

You really don't have a clue what you are talking about.

By no stretch of accounting do you pay taxes on any money twice. You may have a business, but you either don't do your own accounting and taxes or you simply are clueless as to what you are doing.

Oh really?
Tell ya what...Open yourself a business and come back in a year. Let us know how your tax accountant tells you how you have to bend over and grab your ankles.

If you own your own business it would likely be a pass through entity or "flow through entity"

Flow-through entity - Wikipedia, the free encyclopedia

That's only the beginning of the taxes that businesses pay.

We are not just talking small businesses either.

 

[thereisnospoon]

Walmart paid 2% effective in 2012. You paid 15% to 18% effective. See the problem yet?

Walmart reported pre-tax income of $25.7B for its fiscal year ended 1/31/2013; it recognized $8B of income tax expense. That's 31% of its profit going to income taxes, in addition to all of the payroll, property, and sales taxes it pays. Of course, that's not enough for moonbats such as yourself. And its far higher than 2%.

Walmarts effective tax for 2013 is actually 1.7%.

You do realize without some kind of proof, your post is bupkis.