Corporate Taxes Distorting Capital Allocation

Discussion in 'Economy' started by Toro, Feb 19, 2011.

  1. Toro
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    Toro Diamond Member

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    Corporate taxes are too high, and the tax structure of the United States is having a perverse effect on capital allocation, which is bad for the economy.

    The Intelligent Investor: Why Companies Are Hoarding Cash - WSJ.com
     
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  2. Care4all
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    Care4all Warrior Princess Supporting Member

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    what is their 'effective corporate tax' rate? one of the top 5 lowest in the world, isn't it?

    Maybe the reform should be a flat tax closer to the effective corporate tax rate?
     
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  3. uscitizen
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    uscitizen Senior Member

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    So we need to further cut effective corporate tax rates to end their tax evasion?

    I recall a few years ago when one of our largest banks has a multi billion dollar profit year but had a net tax credit. How the heck does that happen?

    Perhaps Microsoft borrowed that money becuase they needed their overseas funds right where they were for other business reasons.
     
  4. xsited1
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    xsited1 Agent P

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    This is an excellent article. Even Canada has lowered their corporate tax rate. This tells the story:

    People like Obama want to keep forcing companies to move more and more of their operations offshore. Somehow that just doesn't make sense to me, but Obama has almost a 50% approval rating so I guess it's okay for at least half of all Americans.
     
  5. Oddball
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    Oddball BANNED Supporting Member

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    Axiomatic.
     
  6. Care4all
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    Care4all Warrior Princess Supporting Member

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    the whole thing needs some sort of reform....a flat tax, imho, would be best....no loop holes, no favoritism towards one industry vs another...

    GE as an example, using the present tax code:


    what a mess!

    we really need all corporations on a level playing field!
     
  7. xsited1
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    xsited1 Agent P

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    Please tell Obama about this. One of his biggest supporters is GE. (That also explains why MSNBC is 'in the tank' with Obama.)
     
  8. Care4all
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    Care4all Warrior Princess Supporting Member

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    Getting a bit silly, with the blaming Obama with every exhale breath xsited? You suffering from Dos? (Deranged Obama Syndrome?) Or can you not debate and discuss anything anymore without the blame game?

    To me, as said....it's just juvenile, a bit silly....and out of touch...and truly....below your intelligence....though i'm certain it's fun....i don't find it useful, during these very trying times....i'm tired of the arm chair 'obama to blame for your hemorrhoid's' whining....as i am CERTAIN many on the right were tired of all the Deranged Bush Syndrome posters a few years back!!! :eek:

    Now, tell me what you would like to see happen, that would reform and improve the present corporate tax code? ;)

    care
     
  9. xsited1
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    Don't try to change the subject. Your post described one of the major problems in America today and it just so happens that President Obama IS part of the problem, not to mention he is President today. And it seems that one of the prerequisites to work in the Obama Administration is to cheat on your taxes. Did you suddenly lose your support for Obama? When did that happen?

    And I don't care if the people on the Right were tired of all the 'Deranged Bush Syndrome' posters a few years back because Bush was a terrible President.

    The solution to the tax code is simple and what is truly amazing is that you are on board with some of it even though those you support in government are not: Start with a simplified tax, eventually moving to a flat tax. But it's not going to happen. Washington will not let go of the power they have with the current broken tax code.
     
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  10. American Horse
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    American Horse AKA "Mustang"

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    Thanks; But about the only ones who don't know or understand this fact about re-patriated corporate earnings are those on the left who claim that US corporations "just love to move jobs overseas" and see it all due to evil Repbulicans harboring the same motive; I.E. "destroy American jobs to please their corporate bosses"

    Have you been persauded of this reality all along Toro, or have come to it just recently?
     
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