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The historical and current belief is that taxes in America are low, compared to the world in general. America is the model of free markets, low regulation, and economic freedom. Right? This is simply not the case. The United States has high taxes in general and higher corporate taxes in particular.
The only nations who have a higher corporate tax rate than America are Suriname, Pakistan, Togo, Benin, Republic of Congo, Cameroon, Chad, Libya, and Vietnam. No information was available for The Democratic Republic of Congo, Iraq, North Korea, Montenegro, Serbia, or Sudan. I cannot imagine why.
.....
Corporate taxes reduce the profits of business owners. This is true because net income is reduced by the tax rate. For example, Firm X, with a $100 investment, earning a 7% return has an income — before taxes — of $7. With a 10% corporate tax rate, net income — after taxes — is $6.30. Firm X now has earned a 6.3% return. In contrast, a corporate tax rate of 40% reduces net income after taxes by $2.80 to $4.20, or a 4.2% after-tax return. This rise in taxes, on the margin, reduces the profit-seeking incentive to take business risks. Why risk starting a biotech company when inflation-protected T-bill's will give you the same return?
After theory and logic tell us what is true, empiricism can confirm our result.
Thankfully, Professors Young Lee (Hanyang University) and Rodger Gordon (UC — San Diego) have done the work for us. In a 2005 journal article they concluded,
This paper finds that the corporate tax rate is significantly negatively correlated with economic growth in a cross-section data set of 70 countries during 1970–1997, controlling for many other determinants/covariates of economic growth.
More specifically, they continue, "The estimates suggest that cutting the corporate tax rate by 10 percentage points can increase the annual growth rate by around 1.1%."[3]
Using these figures, Andrew Chamberlain of the Tax Foundation opines,
by cutting the U.S.'s combined federal and average state corporate tax rate from roughly 40 percent to 30 percent we could boost U.S. economic growth by around 1.1 percent per year — enough to double our nation's wealth every 63 years.[4]
Even better, a cut from the actual corporate tax rate of 35% to a rate of 10% would double our nation's wealth every 30 years.
...
These are examples of what can be seen. As Frédéric Bastiat reminds us, however, it is imperative to also account for what cannot be seen. What would the wealth of our nation be today if the corporate tax rate had always been 10% or less? What creature comforts would have been innovated? What new technologies brought to market? What diseases cured?
Due to a history of high corporate taxes these answers are not known, and we are worse off because of it.
Corporate Taxes Suffocate Growth
mises?
you twits believe anything... except what's actually been shown to happen every time the wingers try to pretend that trickle down economics is actually a thing.
Thanks Obama!...
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
January 27, 2017 | - The United States has now seen a record 11 straight years without 3 percent growth in real Gross Domestic Product, according to the advance estimate published today by the Bureau of Economic Analysis.
“Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level), compared with an increase of 2.6 percent in 2015,” the BEA said in a release put out this morning. The BEA has calculated GDP for each year going back to 1929. Since 1930, it has calculated the inflation-adjusted annual change in GDP.
In the 86 complete years since then, there is only one eleven-year stretch—2006 through 2016—when annual growth in real GDP never hit 3 percent. During the last eleven years, real annual growth in GDP peaked in 2006 at 2.7 percent.
As CNSNews.com has reported before, prior to this period, the longest stretch of years when real GDP did not grow by at least 3.0 percent, as calculated by the BEA, was the four-year stretch from 1930 to 1933. That was during the Great Depression.
The United States has also seen four three-year stretches where real annual growth in GDP did not reach 3.0 percent: 1945-1947; 1956-1958; 1980-1982; and 2001-2003. America saw its longest stretch of years when real GDP grew by 3.0 percent or better in the seven years from 1983-89. President Ronald Reagan was inaugurated in January 1981 and left office in January 1989.
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
yes but Marx said corporations are evil so the least we can do is tax the hell out of them until we can take them over!!
Marx must have been right and the 120 million human souls he slowly starved to death were merely a liberal accident that should be over looked!Thanks Obama!...
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
January 27, 2017 | - The United States has now seen a record 11 straight years without 3 percent growth in real Gross Domestic Product, according to the advance estimate published today by the Bureau of Economic Analysis.
“Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level), compared with an increase of 2.6 percent in 2015,” the BEA said in a release put out this morning. The BEA has calculated GDP for each year going back to 1929. Since 1930, it has calculated the inflation-adjusted annual change in GDP.
In the 86 complete years since then, there is only one eleven-year stretch—2006 through 2016—when annual growth in real GDP never hit 3 percent. During the last eleven years, real annual growth in GDP peaked in 2006 at 2.7 percent.
As CNSNews.com has reported before, prior to this period, the longest stretch of years when real GDP did not grow by at least 3.0 percent, as calculated by the BEA, was the four-year stretch from 1930 to 1933. That was during the Great Depression.
The United States has also seen four three-year stretches where real annual growth in GDP did not reach 3.0 percent: 1945-1947; 1956-1958; 1980-1982; and 2001-2003. America saw its longest stretch of years when real GDP grew by 3.0 percent or better in the seven years from 1983-89. President Ronald Reagan was inaugurated in January 1981 and left office in January 1989.
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
yes but Marx said corporations are evil so the least we can do is tax the hell out of them until we can take them over!!
Or was he right?
Was Marx Right?
. As industry structure approaches more competitive models, it gets harder to do this and shareholders will absorb more of a hit.
.
Yes, corporations are tax collectors. But eliminating the tax on them will have no consequence on trade or wages, .
. This has been proven by history many times, most recently by the bush tax cuts.
The globe is awash in excess savings looking for decent investment returns.
Nobody is talking about cutting the US corp tax rate to 10%. You must be dreaming.The historical and current belief is that taxes in America are low, compared to the world in general. America is the model of free markets, low regulation, and economic freedom. Right? This is simply not the case. The United States has high taxes in general and higher corporate taxes in particular.
The only nations who have a higher corporate tax rate than America are Suriname, Pakistan, Togo, Benin, Republic of Congo, Cameroon, Chad, Libya, and Vietnam. No information was available for The Democratic Republic of Congo, Iraq, North Korea, Montenegro, Serbia, or Sudan. I cannot imagine why.
.....
Corporate taxes reduce the profits of business owners. This is true because net income is reduced by the tax rate. For example, Firm X, with a $100 investment, earning a 7% return has an income — before taxes — of $7. With a 10% corporate tax rate, net income — after taxes — is $6.30. Firm X now has earned a 6.3% return. In contrast, a corporate tax rate of 40% reduces net income after taxes by $2.80 to $4.20, or a 4.2% after-tax return. This rise in taxes, on the margin, reduces the profit-seeking incentive to take business risks. Why risk starting a biotech company when inflation-protected T-bill's will give you the same return?
After theory and logic tell us what is true, empiricism can confirm our result.
Thankfully, Professors Young Lee (Hanyang University) and Rodger Gordon (UC — San Diego) have done the work for us. In a 2005 journal article they concluded,
This paper finds that the corporate tax rate is significantly negatively correlated with economic growth in a cross-section data set of 70 countries during 1970–1997, controlling for many other determinants/covariates of economic growth.
More specifically, they continue, "The estimates suggest that cutting the corporate tax rate by 10 percentage points can increase the annual growth rate by around 1.1%."[3]
Using these figures, Andrew Chamberlain of the Tax Foundation opines,
by cutting the U.S.'s combined federal and average state corporate tax rate from roughly 40 percent to 30 percent we could boost U.S. economic growth by around 1.1 percent per year — enough to double our nation's wealth every 63 years.[4]
Even better, a cut from the actual corporate tax rate of 35% to a rate of 10% would double our nation's wealth every 30 years.
...
These are examples of what can be seen. As Frédéric Bastiat reminds us, however, it is imperative to also account for what cannot be seen. What would the wealth of our nation be today if the corporate tax rate had always been 10% or less? What creature comforts would have been innovated? What new technologies brought to market? What diseases cured?
Due to a history of high corporate taxes these answers are not known, and we are worse off because of it.
Corporate Taxes Suffocate Growth
Trump is talking about to 15%.
The GOP is talking about to 20%.
The DEM's are talking about to 25%.
The compromise will probably end up at 22 1/2% effective for 2017.
The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
Marx must have been right and the 120 million human souls he slowly starved to death were merely a liberal accident that should be over looked!Thanks Obama!...
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
January 27, 2017 | - The United States has now seen a record 11 straight years without 3 percent growth in real Gross Domestic Product, according to the advance estimate published today by the Bureau of Economic Analysis.
“Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level), compared with an increase of 2.6 percent in 2015,” the BEA said in a release put out this morning. The BEA has calculated GDP for each year going back to 1929. Since 1930, it has calculated the inflation-adjusted annual change in GDP.
In the 86 complete years since then, there is only one eleven-year stretch—2006 through 2016—when annual growth in real GDP never hit 3 percent. During the last eleven years, real annual growth in GDP peaked in 2006 at 2.7 percent.
As CNSNews.com has reported before, prior to this period, the longest stretch of years when real GDP did not grow by at least 3.0 percent, as calculated by the BEA, was the four-year stretch from 1930 to 1933. That was during the Great Depression.
The United States has also seen four three-year stretches where real annual growth in GDP did not reach 3.0 percent: 1945-1947; 1956-1958; 1980-1982; and 2001-2003. America saw its longest stretch of years when real GDP grew by 3.0 percent or better in the seven years from 1983-89. President Ronald Reagan was inaugurated in January 1981 and left office in January 1989.
U.S. Has Record 11th Straight Year Without 3% Growth in GDP
yes but Marx said corporations are evil so the least we can do is tax the hell out of them until we can take them over!!
Or was he right?
Was Marx Right?
eliminate the capital gains preference? cool. it is worthless for Jobs Booms, anyway.The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
moronic liberal fool!! Jobs invents the iphone, pays 2 bucks to hire a sheriff,
I'll just leave that there as a monument to Ed's understanding of civics. Steve Jobs has Sheriffs on his payroll. He also bought his own court to handle patent issues. He's a smart guy so sheriff probably also serves as bailiff.
Translation: I'm a liberal fool who thinks govt gives to corporations rather than that capitalist corporations are the greatest welfare program in human history sustaining all 7 billion people on earth.
The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
Republicans want more profit for the rich and corporations, which does nothing for the economy.
For instance, in 1970, 17% of net profit went to investors. Today it's 70%+, which is a 'huge economic miracle.'
moronic liberal fool!! Jobs invents the iphone, pays 2 bucks to hire a sheriff,
I'll just leave that there as a monument to Ed's understanding of civics. Steve Jobs has Sheriffs on his payroll. He also bought his own court to handle patent issues. He's a smart guy so sheriff probably also serves as bailiff.
Translation: I'm a liberal fool who thinks govt gives to corporations rather than that capitalist corporations are the greatest welfare program in human history sustaining all 7 billion people on earth.
Translation - Ed has never signed the front of a paycheck, he's an opinionated wage slave who has never started a business, never bought a business, never employed someone, never taken an entrepreneurial risk and has zero credibility on the matter.
only for a little while:The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
Republicans want more profit for the rich and corporations, which does nothing for the economy.
For instance, in 1970, 17% of net profit went to investors. Today it's 70%+, which is a 'huge economic miracle.'
Ireland reduced the corporate rate to 11% and half the world's major corporations moved there in whole or in part. It created a huge economic miracle there for obviousl reasons.
In March 2008, Ireland had the highest level of household debt relative to disposable income in the developed world at 190%, causing a further slow down in private consumption, and thus also being one of the reasons for the long lasting recession.[27] The hard economic climate was reported in April 2010, even to have led to a resumed emigration.[28]
After a year with stagnant economic activity in 2010, Irish real GDP rose by 2.2% in 2011 and 0.2% in 2012, which was mainly driven by strong improvements in the export sector – while private consumption remained subdued.--https://en.wikipedia.org/wiki/Economy_of_the_Republic_of_Ireland
The US has been taxing companies since day one....
The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
only for a little while:The effective US corporate tax rate is currently 12.6% Are you promoting a tax increase?
If you read you know that Republicans want to eliminate tax altogether to create a huge economic miracle here.
Republicans want more profit for the rich and corporations, which does nothing for the economy.
For instance, in 1970, 17% of net profit went to investors. Today it's 70%+, which is a 'huge economic miracle.'
Ireland reduced the corporate rate to 11% and half the world's major corporations moved there in whole or in part. It created a huge economic miracle there for obviousl reasons.
In March 2008, Ireland had the highest level of household debt relative to disposable income in the developed world at 190%, causing a further slow down in private consumption, and thus also being one of the reasons for the long lasting recession.[27] The hard economic climate was reported in April 2010, even to have led to a resumed emigration.[28]
After a year with stagnant economic activity in 2010, Irish real GDP rose by 2.2% in 2011 and 0.2% in 2012, which was mainly driven by strong improvements in the export sector – while private consumption remained subdued.--https://en.wikipedia.org/wiki/Economy_of_the_Republic_of_Ireland
By contrast, FDR's social programs propelled us to first world status.
all i hear from the right wing, is "lip service".funny how the past 8 years a left wing administration carried them all out isn't it?i don't think so. however, i haven't actually looked into it, except for the war on drugs.why not just end the income tax by abolishing our useless wars on crime, drugs, poverty, and terror?why not just tax all income including capital gains at one low flat rate?
and how do you make up the rest of the revenue because those annual expenditures are less than the total income tax collected
You have to remember, our alleged "wars" on crime, drugs, and terror, are right wing, national socialist programs that are cost centers, not revenue centers.
According to a 2008 study published by Harvard economist Jeffrey A. Miron, the annual savings on enforcement and incarceration costs from the legalization of drugs would amount to roughly $41.3 billion, with $25.7 billion being saved among the states and over $15.6 billion accrued for the federal government. Miron further estimated at least $46.7 billion in tax revenue based on rates comparable to those on tobacco and alcohol ($8.7 billion from marijuana, $32.6 billion from cocaine and heroin, remainder from other drugs).--https://en.wikipedia.org/wiki/War_on_Drugs#Costs_to_taxpayers
we will see cost reductions to government.
And I have always been in favor of legalizing all drugs and ending the war on drugs so you're mistaken (again) if you think I support it.
