Create Jobs by RAISING corporate taxes and giving tax credits to increase production

Discussion in 'Economy' started by stans, Mar 1, 2012.

  1. stans
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    stans Member

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    Eliminate, or at least for a few years, all corporate loopholes, and accounting advantages such as tax loss carry-forward or carry-back If necessary, temporarily raise income and business taxes on all applicable businesses so that they are all operating with lower quarter to quarter profits. . As a result of this increased revenue, the government can spend more Keynesian induced money without increasing the national debt excessively.

    Induce the businesses to expand by giving them a chance to eliminate their new found losses. Give them tax credits allowing them to expand their product and/or service production capabilities in the US by, say, 10-20%, effectively for free, as far as they’re concerned. They must take advantage of this tax credit since their competition will, giving their competition an advantage over them in the future. Additionally, maintain every existing Keynesian government outflow of money such as unemployment payments, payroll tax elimination, and infrastructure maintenance and expansion to keep as much money flowing into the economy as possible which will maximize demand and economic growth. Also allow businesses to setup job training schools, for their business or industry up to a certain percentage of their capacity increase tax credits. Additionally, allow part of the tax credit for approved technologically NEW products (a minor modification of existing products is not creditable). All workers hired under these programs must be paid at the industry prevailing wage rate. If a small business can show a reasonable expansion plan, then lend them the money since many small businesses are presently unable to borrow at this time. Executing this plan should immediately create numerous jobs and place a massive amount of money in the economy creating massive demand and further hiring. Prices should be stable for a long time since businesses already have excess capability, enough to fill any immediate product/service demand increase from the existing moribund economy while the tax credit driven increased production should keep future prices steady. Also, as an aside, head off a nurse shortage coming up in the near future by paying for nurses’ tuition at the end of every successful academic year. Many nurses are baby boomers and will be retiring in the not too distant future and you can’t replace them overnight. Identify other professions with an immanent shortage, if there are any, and finance future practitioners education’s, similar to the future nurses, to head off future shortages. Last and most importantly of all, because nothing can be accomplished without this. Elect a government that’s interested in passing laws that will create an environment such as described above in order to increase employment.

    See the whole story here: www.econostan.com
     
    Last edited: Mar 1, 2012
  2. Katzndogz
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    Katzndogz Diamond Member

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    Oh they will expand all right, in China or India.
     
  3. stans
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    stans Member

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    No they won't because the tax credits will only apply to internal US expansion. I thought that was obvious but I'll correct it. Thanks for pointing out the oversight.
     
    Last edited: Mar 1, 2012
  4. starcraftzzz
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    starcraftzzz Senior Member

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    Democrats kind of already did this, they raised taxes on coperations shipping jobs over sees and used the revneu to cut taxes for companines creating jobs in America. Of course all the republcians voted against it
     
  5. stans
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    stans Member

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    That's different. My proposal says that in order to get the tax credit the companies must expand production in the US. Companies can expand overseas but they're going to take a big tax hit for their business in the US. That's what forces them to take advantage of the tax credit and expand in the US.

    You said that Dems raised taxes and then lowered taxes. It doesn't make any sense. Possibly you remember something incorrectly. When did they raise corporate taxes and when did they lower them? What does Republicans voting against it have anything to do with my proposal, which is the topic at hand? Does "it" mean that Republicans voted against cutting taxes?
     
    Last edited: Mar 2, 2012
  6. editec
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    editec Mr. Forgot-it-All

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    Yeah that's one approach, I suppose.

    It won't trump the pernicious effect of FREE TRADE muchm but it would help some, I guess.
     
  7. stans
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    stans Member

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    You could keep the new facilities operating by stretching out tax credit payments over a few years similar to capital goods deductions.
     
  8. ShackledNation
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    ShackledNation Libertarian

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    In order for a business to expand, it has to have the money to do so. This money comes in the forms of savings and investment. The capital gains tax subtracts from this pool of savings. With less savings, a company will be less able to expand. Thus taxing a corporate income at a higher rate will discourage expansion. Tax cuts after the fact will only help the companies who can expand with the higher rates. The companies that have enough savings to expand with higher rates are the bigger and older companies. The companies that are hurt most by a higher rate are those that have little savings, also known as startups.

    So really, this policy will only make it more difficult for start up companies to gain a share of the market, and solidify the current corporate status quo's power. It will serve to block competition and help not consumers but corrupt corporate elites already in power.
     
    Last edited: Mar 2, 2012
  9. stans
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    stans Member

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    From the proposal: "If a small business can show a reasonable expansion plan, then lend them the money since many small businesses are presently unable to borrow at this time." "Eliminate, or at least for a few years, all corporate loopholes, and accounting advantages such as tax loss carry-forward or carry-back If necessary, temporarily raise income and business taxes on all applicable businesses so that they are all operating with lower quarter to quarter profits."

    Tax credits are simultaneous timewise with tax rate increase. Thought that was understood. I'll add the word "Simultaneously" to the proposal.
    Thanks for the critique.
     
    Last edited: Mar 2, 2012
  10. whitehall
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    whitehall Gold Member

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    Get it through your heads lefties that it is a zero sum gain to confiscate money from one segment of society, filter it through government bureaucracy and distribute it to another segment of society. Government manufactures money but it doesn't make a dime.
     

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