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There is actually a reasonable reason for having very high corporate taxes.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.
I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better
You bet! Absolutely!
All of that increases the financial worth of the business
Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?
First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
A lower Corporate income tax could raise their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures.
They're projecting $1 million in annual pre-tax profits. Are they more likely to make the investment if they can keep $650,000 a year......or if they can keep $800,000 a year?
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more.
The tax increase is paid in the form of higher prices, lower income for employees and lower dividends for owners.
Republicans know cutting the corp rate does not create jobs.
So why do liberals constantly whine about inversions?
They're projecting $1 million in annual pre-tax profits.
i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
There is actually a reasonable reason for having very high corporate taxes.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.
I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better
You bet! Absolutely!
All of that increases the financial worth of the business
Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?
If you own a business, the best thing to do is pay yourself a salary. That is not part of the profit that can be taxed. Otherwise the business will be taxed on the profit, if you take it out, and then you will get taxed on your income.
And the financial worth of a business is based on the profits, the assets, and the projected profits. If you have a business with $100,000 worth of equipment, that adds to the worth of the business.
The argument for lower corp tax rates is best couched in competitiveness. It's hard to argue that a 38% rate is more attractive than a 25% rate, as is seen in Europe. Many will point out that the nominal rate paid by US companies is 28%, after a myriad of deductions and loopholes. The problem is that those deductions and loopholes are used primarily by the biggest entities. As usual it's the small and midsize concerns that bare the brunt.First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
There is actually a reasonable reason for having very high corporate taxes.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.
I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better
You bet! Absolutely!
All of that increases the financial worth of the business
Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?
If you own a business, the best thing to do is pay yourself a salary. That is not part of the profit that can be taxed. Otherwise the business will be taxed on the profit, if you take it out, and then you will get taxed on your income.
And the financial worth of a business is based on the profits, the assets, and the projected profits. If you have a business with $100,000 worth of equipment, that adds to the worth of the business.
First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
A lower Corporate income tax could raise their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures.
They're projecting $1 million in annual pre-tax profits. Are they more likely to make the investment if they can keep $650,000 a year......or if they can keep $800,000 a year?
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more.
The tax increase is paid in the form of higher prices, lower income for employees and lower dividends for owners.
Republicans know cutting the corp rate does not create jobs.
So why do liberals constantly whine about inversions?
They're projecting $1 million in annual pre-tax profits.
On $100M in revenue, or 3.5%
In relation, YOU pay 30% of total income.
There is actually a reasonable reason for having very high corporate taxes.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.
I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.
The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better
You bet! Absolutely!
All of that increases the financial worth of the business
Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?
If you own a business, the best thing to do is pay yourself a salary. That is not part of the profit that can be taxed. Otherwise the business will be taxed on the profit, if you take it out, and then you will get taxed on your income.
And the financial worth of a business is based on the profits, the assets, and the projected profits. If you have a business with $100,000 worth of equipment, that adds to the worth of the business.
Depending on the business, the best thing you can do is have the business pay some or all of your expenses.
Owning equipment is the absolutely the WORST thing you can do. You lease, ideally from yourself. Leasing sets your expense for years. If it breaks, they fix it. When it's time to replace, they replace it.
Derp...First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
You don't know shit.i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
And once again maybe you should follow your own advice. But why do that when you can just carry on with your personal grudge!
I love living rent free, but it seems that you would allow more time to get the place furnished. Well that may be impossible as there is a lot of space here and it may take 60+ years to furnish this place!
All I did was show that the OP is a far left drone and I was correct!
But thanks for pointing that the OP is also clueless, just like you!
You don't know shit.i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
And once again maybe you should follow your own advice. But why do that when you can just carry on with your personal grudge!
I love living rent free, but it seems that you would allow more time to get the place furnished. Well that may be impossible as there is a lot of space here and it may take 60+ years to furnish this place!
All I did was show that the OP is a far left drone and I was correct!
But thanks for pointing that the OP is also clueless, just like you!
So, if the corporate rate is cut, all prices will drop?Really?Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.
But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.
First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
A lower Corporate income tax could raise their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures.
They're projecting $1 million in annual pre-tax profits. Are they more likely to make the investment if they can keep $650,000 a year......or if they can keep $800,000 a year?
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more.
The tax increase is paid in the form of higher prices, lower income for employees and lower dividends for owners.
Republicans know cutting the corp rate does not create jobs.
So why do liberals constantly whine about inversions?
I have run manufacturing businesses, plant management & have owned by own business for 20 years.so dave whats your background in finance that i should buy what you are saying?.....serious question,im not trying to be a smartass.........
Go fuck yourself. Prove me wrong big mouth or STFU.MediaMatters told him what to cut and paste.so dave whats your background in finance that i should buy what you are saying?.....serious question,im not trying to be a smartass.........
Obviously the left have no clue as to why companies are moving offshore. Thank God Hillary lost.First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
First of all, corporate income tax is on profits.
If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.
Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.
Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?
Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.
A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.
A lower Corporate income tax could raise their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures.
They're projecting $1 million in annual pre-tax profits. Are they more likely to make the investment if they can keep $650,000 a year......or if they can keep $800,000 a year?
Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more.
The tax increase is paid in the form of higher prices, lower income for employees and lower dividends for owners.
Republicans know cutting the corp rate does not create jobs.
So why do liberals constantly whine about inversions?
So, your advice would be not make any major purchases until the corp tax rate is lowered because the pricing will drop.
All I did was show that the OP is a far left drone and I was correct!i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
And once again maybe you should follow your own advice. But why do that when you can just carry on with your personal grudge!
I love living rent free, but it seems that you would allow more time to get the place furnished. Well that may be impossible as there is a lot of space here and it may take 60+ years to furnish this place!
All I did was show that the OP is a far left drone and I was correct!
But thanks for pointing that the OP is also clueless, just like you!
All I did was show that the OP is a far left drone and I was correct!i wasnt the one saying he was clueless was i?....that was you,so like i said,i dont see you showing us how knowledgeable you are on the subject.......and yet i see nothing from you countering what he is saying....Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
Yep! You did not offer anything!
Maybe next time you should!
And once again maybe you should follow your own advice. But why do that when you can just carry on with your personal grudge!
I love living rent free, but it seems that you would allow more time to get the place furnished. Well that may be impossible as there is a lot of space here and it may take 60+ years to furnish this place!
All I did was show that the OP is a far left drone and I was correct!
But thanks for pointing that the OP is also clueless, just like you!
no you said he was clueless about what he was talking about,but when asked to prove what you know about the subject,you danced like the little drone you are and proved you know nothing about the subject yourself.....just more kosh talk.....wow was i surprised...
Another far left drone that proves they do not understand anything in reality.
They just run these debunked religious narratives.
Seriously you can not make this stuff up!
