A Novel Idea

[Modbert]

Here's a novel idea: Lower the corporate tax rate but at the same time limit/lower the amount of exemptions and loopholes available to corporations.

Otherwise we end up with this:

From 2004:

Most US firms paid no income taxes in '90s - The Boston Globe

WASHINGTON -- More than half of US corporations paid no federal income taxes during the boom years of the late 1990s, and those that did were able to shelter much of their income, according to congressional accountants.

The report by the General Accounting Office raises questions about whether the corporate income tax burden is too light and distributed unequally. It could undermine arguments that US companies are overtaxed and provide ammunition to politicians and activists who claim companies are using loopholes to avoid paying their fair share.

And the tune hasn't changed in 2008:

Study says most corporations pay no U.S. income taxes | Reuters

(Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 trillion, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

 

[DiamondDave]

You'll get no argument from me if you support lowering the rate, simplifying the system, eliminating loopholes, reducing the size of the IRS as a result, and ensuring equal treatment and not this convoluted mess we have now

 

[shintao]

We are fools to tax corporations at all. It just opens the door to government for them. It is the consumer that pays their tax burden through increased prices on goods & services. It costs us millions (maybe billions) in taxes to investigate, regulate, Administrate, protect, and keep solvent.

Cut the umbilical cord to corporations and return private enterprise to them.

The US citizen has a remedy to bad corporate behavior called the justice system. It is foolish to say you are a capitalist and allow government to control business. Simply set them free, and cut your income taxes at the same time.

 

[Modbert]

You'll get no argument from me if you support lowering the rate, simplifying the system, eliminating loopholes, reducing the size of the IRS as a result, and ensuring equal treatment and not this convoluted mess we have now

I think there's certainly a lot of improvement that can be made.

 

[DiamondDave]

Yes... tons of improvement by taking away all the 'improvements' the IRS and the bureaucrats have made over the decades

 

[Avatar4321]

Works for me.

But how are you going to keep the President from using the veto when so many of his contributors use those exemptions to pay no corporate taxes?

 

[uscitizen]

Write a novel about it and make lots of money.
that seems to be the only novel idea politician have had in decades.

 

[Modbert]

Works for me.

But how are you going to keep the President from using the veto when so many of his contributors use those exemptions to pay no corporate taxes?

I would be surprised if it even got out of committee, never mind to the President's desk.

 

[Remodeling Maidiac]

Finally a sensible post from the left.

Sigh........

My work is complete, so I'm going to retire to a 6 pack and some science channel.

 

[Baruch Menachem]

Good plan.

Lower rates, no stupid payoffs and no stupid uneconomic 'target tax breaks' for good buds of bad guys.

 

[Remodeling Maidiac]

Good plan.

Lower rates, no stupid payoffs and no stupid uneconomic 'target tax breaks' for good buds of bad guys.

Agreed, but I would include first time start up credits to entice new companies.

 

[NYcarbineer]

It's easy for politicians to lower rates, it's difficult to get them to close loopholes.

When they try to do both and fail, it's usually only the easy part that gets done.

 

[uscitizen]

Loopholes to specific corporations are payoffs and favoritism. Nothing more.

Why we will never see a pure flat tax structure with no exemptions or deductions.

 

[Trajan]

Here's a novel idea: Lower the corporate tax rate but at the same time limit/lower the amount of exemptions and loopholes available to corporations.

Otherwise we end up with this:

From 2004:

Most US firms paid no income taxes in '90s - The Boston Globe

WASHINGTON -- More than half of US corporations paid no federal income taxes during the boom years of the late 1990s, and those that did were able to shelter much of their income, according to congressional accountants.

The report by the General Accounting Office raises questions about whether the corporate income tax burden is too light and distributed unequally. It could undermine arguments that US companies are overtaxed and provide ammunition to politicians and activists who claim companies are using loopholes to avoid paying their fair share.

And the tune hasn't changed in 2008:

Study says most corporations pay no U.S. income taxes | Reuters

(Reuters) - Most U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite trillions of dollars worth of sales, a government study released on Tuesday said.

The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 trillion, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

uhm well its not so novel, we have discussed this here, well for a while now.....and I as I said in a thread you were participating in, I sppt. that.

Didn't the debt. commission broach that subject too?

any co's from 09 or 10 that didn't pay taxes?

 

[percysunshine]

Flat 18%. Reduce the 65,000 page tax code to one sentence. Fire all the IRS agents and send them to the border with mexico to collect transit fees from all the illegal immigrants at $2000 per head.

 

[uscitizen]

Flat 18%. Reduce the 65,000 page tax code to one sentence. Fire all the IRS agents and send them to the border with mexico to collect transit fees from all the illegal immigrants at $2000 per head.

HR block and other parasitic corps depending on americas complex tax structure will spend their last dime buyng votes against any flat tax.

 

[Kuros]

Yes, we should get rid of loopholes like Ireland, the Netherlands, the Caymans, Switzerland, etc.