Are corporate tax rates really a problem?
Conservatives often point out that our corporate tax rates are the second highest in the world. However what they omit is the large amount of deductio...
Conservatives often point out that our corporate tax rates are the second highest in the world. However what they omit is the large amount of deductions and loopholes in the government, the IRS itself concludes that a quarter of corporations in the US don’t pay any corporate taxes at all. In effect even though the tax rate is lower in Ireland corporations pay more due to fewer deductions. Also European countries afford lower corporate tax rates by having MUCH higher taxes on income as well as employer funded entitlements. So are conservatives just misinformed that is it is cheaper to do business in Germany, or are they cherry picking the facts to starve the federal government yet again(by cleverly omitting the other taxes in Europe) and skirt the federal guidelines that are tied to the deductions?
Republican have been calling for business tax breaks for thirty years, and getting them, and all business has done that whole time is move more and more American jobs overseas.
Yeah I think there’s a definite flaw in that republican theory somewhere.
The real problem is that American workers just cost too much compared to people whose options are to work for whatever they can get or starve.
All we really have to do, to keep business in America, is get American workers to accept lives that amount to actual slavery.
Then we call it Paradise and take a well deserved vacation. Sure.
Well lets put it this way. Would you bring your business to the United States when it has either the highest or is tied with Japan for the highest tax rate on businesses OR would you take it to a country who has low rates and keep more of your profits.
It is simply economics like it or not, the higher you tax a corporation the more likely it will take its business elsewhere or go bankrupt.
The Euro’s pay higher personal taxes because they have more programs…. they are not free like many seem to think.
Good point. In general, it seems that people are overemphasizing taxation and underemphasizing government spending. They can’t wrap their minds around the idea that one has something to do with the other. High spending guarantees higher taxes at some point in the future.
Example: In 2008, Democrats complained that the wars are too costly. But when asked how they would pay for all their pet projects, the resounding response was "just end the war, that’ll pay for it."
And yet when Republicans complain about Democrats’ unsustainable spending, and you ask them how they propose we pay for all the wars they are championing, they exclaim "just cut all those giveaway and entitlement programs!"
Basically, both sides don’t seem to really care that we are spending ourselves into bankruptcy. All they care about is making their own corrupt, sustainable agenda look LESS BAD than the other guys’ corrupt, unsustainable agenda.
Taxes (whether personal or corporate) need to be as high as our federal spending is. You want low taxes? Then you’d better champion a spending freeze. Otherwise, we will hit hyperinflation or else be wholesale auctioned to the corporations of other countries.
Have you taken into account the loopholes in other countries? I’m sure American "conservatives" aren’t the only ones using loopholes.
Yep the cost of Living in Europe is , just what we want here in the US.
Typical mindset Obama has instilled in the American Public—-(your no better than anyone else, you don’t need to live any better than anyone else in the world does).
Mediocrity breeds Dumb.a.s.s.e.s
oh you know those conservacracks, half truthes pass for truth.
OK, we get it, you dislike conservatives and want to allow Obama to do whatever he wants to our country and your life.
You’ve made yourself 100% clear already.
You are wrong, because companies choose to incorporate outside of the US almost every time because our tax code is so complex. Do a little research into this, and youll see that 80% of the time large companies move their headquarters out of the US.
To be honest with you, if you dont know about taxes and economics, you shouldnt be opining about it online.
We need to starve the federal government. That is what you do to cancerous cells.Corporate taxes are not the only tax. Any mandated regulation is also a tax. Social security taxes.All the fees and liscences it takes to run a business. Minimum wage is a tax.If there were all thesew deductions, then companies would not leave. Also unions are a big tax. When you force a company to pay union wages to do work for government, that is a tax.
No, you don’t understand the tax system.
Corporations are taxed @ the 2nd highest rate in the world, and then, whats left of those profits are distributed to stockholders (owners) of the corporation; these are called dividends. Those dividends are then taxed AGAIN–a double tax–as income, at the stockholder’s personal income tax rate.
A agree that loop holes are a major problem with the tax system but I doubt this is as big and widespread of a problem as you imply. Do you have any source?
I just know many businesses are leaving California becasue of their systen that is so oppresive to business and many are coming to Texas because of the way we do things here. As a result, Texas is one of the strongest state economies in the US! And California was in big trouble before the economy tanked!
Perhaps you can explain why, when tax rates go down, tax revenue goes UP…and vice versa.