ilmor Posted November 20, 2008 Report Share Posted November 20, 2008 What if Obama has to decide to cut our corporate tax rates to stimulate the economy? I guess that won't be possible, though, since we'll need the good corporations' money to fund the bailouts of those corporations who made poor business decisions... http://www.bloomberg.com/apps/news?pid=206...&refer=home Link to comment Share on other sites More sharing options...
ingram4868 Posted November 20, 2008 Report Share Posted November 20, 2008 So even the Russians have learned to cut taxes in a recession. Link to comment Share on other sites More sharing options...
Guest markham51 Posted November 20, 2008 Report Share Posted November 20, 2008 Good idea! Let everyone follow the Russian model Link to comment Share on other sites More sharing options...
JeffIsHereToo Posted November 20, 2008 Report Share Posted November 20, 2008 FYI! About two-thirds of U.S. companies and foreign firms doing business in this country paid NO (ZERO) federal income taxes from 1998 to 2005, according to a study by the Government Accountability Office. The report said that about a quarter of large corporations - ones that had more than $250 million in assets or $50 million in gross receipts - paid no taxes. In 2005, for instance, 3,565 large U.S. companies and 998 large foreign-owned companies operating here did not pay any income taxes. While I do happen to agree that lower corporate taxes encourage economic growth I'm not as sure we need to lower them in REAL terms and back in May, I had a posted on McCain campaign advisor Carly Fiorina's appearance on "This Week" where she presented the McCain case: Ms. Fiorina has oh so carefully managed to omit some key details about corporate taxation as it currently stands. While she is, technically, correct that the corporate tax rate in the U.S. is second only to Japan at 35% (the average in the European Union is 25.8%), she fails to make a distinction between the corporate tax rate and the actual corporate tax burden on American corporations. Corporate tax law, not surprisingly, is full of loopholes and exemptions. When fully considered, the average tax burden for American corporations in 2004 was 18%. By comparison, the 15 Western European nations had corporate tax burdens between 20 and 22% or Russia at 24% plus and 18% VAT tax! Another metric for evaluating true corporate tax burdens is as a percent of GDP. In 2003, corporate tax burdens in the U.S. were 2.1% of GDP, 3.2% in the European Union and 4.3% in industrialized nations of Asia, corporate tax rates are not our issue. http://www.sfgate.com/cgi-bin/article.cgi?.../MNC4129OFL.DTL If your really interested in the facts here is the report. http://links.sfgate.com/ZEMP Link to comment Share on other sites More sharing options...
JeffIsHereToo Posted November 20, 2008 Report Share Posted November 20, 2008 Whoa! I just thought of something! Remember everyone hitting Obama on the fact that his tax cut wouldn't help the XX% of people that don't pay taxes! Why didn't anyone think of hitting McCain for jumping on reducing the corporate tax rate when so many company's don't pay taxes anyway! Are we the only people paying taxes? Link to comment Share on other sites More sharing options...
SNKBITE Posted November 20, 2008 Report Share Posted November 20, 2008 Econ 101 states the following: "Corporations don't pay taxes, the consumer does". They may have a tax burden, but in the end it only gets passed on to the consumer in higher prices. What a basic idea that escapes only the feeble minded. Link to comment Share on other sites More sharing options...
JeffIsHereToo Posted November 20, 2008 Report Share Posted November 20, 2008 Econ 101 states the following: "Corporations don't pay taxes, the consumer does". They may have a tax burden, but in the end it only gets passed on to the consumer in higher prices. What a basic idea that escapes only the feeble minded. Agreed but that's not what the report is saying. There is in fact, for many, no tax to pass on. Link to comment Share on other sites More sharing options...
ilmor Posted November 21, 2008 Author Report Share Posted November 21, 2008 Econ 101 states the following: "Corporations don't pay taxes, the consumer does". They may have a tax burden, but in the end it only gets passed on to the consumer in higher prices. What a basic idea that escapes only the feeble minded. Its not quite that simple - if everything were passed along to the consumer, they'd always be profitable, right? But, they are not, because of so many factors such as competition, overhead, management descisions, research and planning, advertising, marketing, production efficiency, union labor rates, labor availability, desirablility of product, etc., etc., Link to comment Share on other sites More sharing options...
cobrafan Posted November 21, 2008 Report Share Posted November 21, 2008 OK, so let me see if I have the facts straight so that I can understand this tax thing. We have 66% of all US corporations don't pay any taxes and 40% of it's citizens don't pay any taxes. Soooo we want to increase the tax burden on the remaining 33% of companies that do pay taxes and the top 5% of the citizens that are making money. OK, got it. Sounds like a great idea. Link to comment Share on other sites More sharing options...
Cobraengineer Posted November 21, 2008 Report Share Posted November 21, 2008 FYI! About two-thirds of U.S. companies and foreign firms doing business in this country paid NO (ZERO) federal income taxes from 1998 to 2005, according to a study by the Government Accountability Office. The report said that about a quarter of large corporations - ones that had more than $250 million in assets or $50 million in gross receipts - paid no taxes. In 2005, for instance, 3,565 large U.S. companies and 998 large foreign-owned companies operating here did not pay any income taxes. While I do happen to agree that lower corporate taxes encourage economic growth I'm not as sure we need to lower them in REAL terms and back in May, I had a posted on McCain campaign advisor Carly Fiorina's appearance on "This Week" where she presented the McCain case: Ms. Fiorina has oh so carefully managed to omit some key details about corporate taxation as it currently stands. While she is, technically, correct that the corporate tax rate in the U.S. is second only to Japan at 35% (the average in the European Union is 25.8%), she fails to make a distinction between the corporate tax rate and the actual corporate tax burden on American corporations. Corporate tax law, not surprisingly, is full of loopholes and exemptions. When fully considered, the average tax burden for American corporations in 2004 was 18%. By comparison, the 15 Western European nations had corporate tax burdens between 20 and 22% or Russia at 24% plus and 18% VAT tax! Another metric for evaluating true corporate tax burdens is as a percent of GDP. In 2003, corporate tax burdens in the U.S. were 2.1% of GDP, 3.2% in the European Union and 4.3% in industrialized nations of Asia, corporate tax rates are not our issue. http://www.sfgate.com/cgi-bin/article.cgi?.../MNC4129OFL.DTL If your really interested in the facts here is the report. http://links.sfgate.com/ZEMP Well if 2/3rds don't pay taxes anyway we got nothing to lose by cutting corporate taxes. They can't pay less than zero and it would be a great political tool to spur the economy. You convinced me cut corporate taxes now! Link to comment Share on other sites More sharing options...
jaydub Mach1 Posted November 21, 2008 Report Share Posted November 21, 2008 Well, the dirty little secret is that when tax rates are cut, more money is paid in taxes. Sound crazy? Well, I'm just a dumb mechanical engineer with an MBA, so I only understand simple things....like facts, cause and effects. There have been record revenues into the US Treasury during the Bush tax cuts. The recession of the first half of the 1990's was made worse by Clintons tax increases when he came to office in 1992. But, to his credit, he did tell us he would raise taxes when he was campaigning. And about that great Clinton economy of the late 1990’s? It wouldn’t have happened without the Taxpayers Relief Act that passed in 1996. It …cut taxes…hmmm I’m beginning to see a pattern, here. Everybody wins with tax cuts, except the power mad politicians. Facts are facts. So if The One was REALLY concerned aout the little guy that he claims to represent, he would cut taxes to grow the economy. It's not a coincidence that the global stock markets are down when a socialist is elected. Link to comment Share on other sites More sharing options...
2007GT Posted November 21, 2008 Report Share Posted November 21, 2008 Well, the dirty little secret is that when tax rates are cut, more money is paid in taxes. Sound crazy? Well, I'm just a dumb mechanical engineer with an MBA, so I only understand simple things....like facts, cause and effects. There have been record revenues into the US Treasury during the Bush tax cuts. The recession of the first half of the 1990's was made worse by Clintons tax increases when he came to office in 1992. But, to his credit, he did tell us he would raise taxes when he was campaigning. And about that great Clinton economy of the late 1990’s? It wouldn’t have happened without the Taxpayers Relief Act that passed in 1996. It …cut taxes…hmmm I’m beginning to see a pattern, here. Everybody wins with tax cuts, except the power mad politicians. Facts are facts. So if The One was REALLY concerned aout the little guy that he claims to represent, he would cut taxes to grow the economy. It's not a coincidence that the global stock markets are down when a socialist is elected. Exactly! Link to comment Share on other sites More sharing options...
JeffIsHereToo Posted November 22, 2008 Report Share Posted November 22, 2008 Well if 2/3rds don't pay taxes anyway we got nothing to lose by cutting corporate taxes. They can't pay less than zero and it would be a great political tool to spur the economy. You convinced me cut corporate taxes now! Sure! I guess if 40% of American's don't pay taxes then there should be no issue cutting my taxes too....oh wait! These companies that don't pay taxes need my taxes so they can get a bailout! That's right! Silly me! Link to comment Share on other sites More sharing options...
Guest markham51 Posted November 22, 2008 Report Share Posted November 22, 2008 Oh God NO! Please guys no more Joe the Plumber conversations! Link to comment Share on other sites More sharing options...
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