Tax cuts for business are stupid

[RealDave]

First of all, corporate income tax is on profits.

If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.

Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.

Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.

A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.

Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?

Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.

 

[Harry Dresden]

so dave whats your background in finance that i should buy what you are saying?.....serious question,im not trying to be a smartass.........

 

[skookerasbil]

First of all, corporate income tax is on profits.

If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.

Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.

Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.

A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.

Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?

Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.

Oy

 

[Kosh]

Another far left drone that proves they do not understand anything in reality.

They just run these debunked religious narratives.

Seriously you can not make this stuff up!

 

[Harry Dresden]

Another far left drone that proves they do not understand anything in reality.

They just run these debunked religious narratives.

Seriously you can not make this stuff up!

and yet i see nothing from you countering what he is saying....

 

[Natural Citizen]

Pairing federal spending and debt with tax cuts does more harm than good. A couple of trillion dollars added to the debt isn't very smart. On top of that, the Federal Reserve will just turn around and monetize that debt, further debasing the dollar.

Idiots. lol.

 

[Natural Citizen]

I'm pretty sure that the GOP tax plan also includes a consumer index price stealth tax which will allow them to further lie about inflation. Haha.

 

[Weatherman2020]

First of all, corporate income tax is on profits.

If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.

Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.

Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.

A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.

Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?

Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.

Obviously the left have no clue as to why companies are moving offshore. Thank God Hillary lost.

 

[Weatherman2020]

so dave whats your background in finance that i should buy what you are saying?.....serious question,im not trying to be a smartass.........

MediaMatters told him what to cut and paste.

 

[Dont Taz Me Bro]

so dave whats your background in finance that i should buy what you are saying?.....serious question,im not trying to be a smartass.........

He slept in a Holiday Inn Express last night........

 

[WinterBorn]

Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.

But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.

 

[JoeMoma]

Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.

But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.

It would be nice for the businesses if they could always pass costs increases to their customers. However, customers get to make the choice of remaining customers or not. If prices become too high, customers go away. Thus the tax rate can make or break a business.

 

[WinterBorn]

Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.

But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.

It would be nice for the businesses if they could always pass costs increases to their customers. However, customers get to make the choice of remaining customers or not. If prices become too high, customers go away. Thus the tax rate can make or break a business.

It is always that way, whether taxed to the max or not taxed at all. That is why WalMart is able to destroy the competition.

 

[Weatherman2020]

Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.

But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.

It would be nice for the businesses if they could always pass costs increases to their customers. However, customers get to make the choice of remaining customers or not. If prices become too high, customers go away. Thus the tax rate can make or break a business.

Like when gasoline is $5 who has a choice of not paying it? They could charge $25 and sales might dip a few percentage points but that is it. People will pay but have to give up other things considered luxury items.

 

[JoeMoma]

Actually, the OP is sort of correct. Corporate/business tax cuts are stupid.

But not in the way he thinks. Business taxes are stupid. Businesses don't pay taxes, even if they write a check to the IRS. Business taxes are rolled into the cost of doing business. If costs go up, so do prices. The customers are the ones paying these business taxes. It just gives the politicians something to crow about.

It would be nice for the businesses if they could always pass costs increases to their customers. However, customers get to make the choice of remaining customers or not. If prices become too high, customers go away. Thus the tax rate can make or break a business.

Like when gasoline is $5 who has a choice of not paying it? They could charge $25 and sales might dip a few percentage points but that is it. People will pay but have to give up other things considered luxury items.

Yeah, people might have to eat beans and rice to be able to afford gas for their cars.

 

[Weatherman2020]

Costs go up today because there is little competition. If a company charged too much for a product, it was possible for most Americans to start a company to compete against that product. Today starting a company is only for the rich and connected.

 

[Toddsterpatriot]

First of all, corporate income tax is on profits.

If a company is in trouble & struggling, it is not paying income tax so therefore a tax cut does nothing. It only helps companies making a profit. The rates are graduated so if the corp s paying that top rate, it is doing well & does not need a tax cut.

Expanding & hiring is already tax deductible. Corporate tax rates have no effect on this.

Companies hire when they have demand for their product & need help to produce that product. Cutting corporate taxes does not increase that denmad. Cutting tax for people who will spend it increases that demand.

A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.

Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more. So if this new 20% rate kicks in, when should we expect all rices to drop?

Republicans know cutting the corp rate does not create jobs. Trump is too stupid to know it. And most Republicans will try to argue with me. I am right.

A lower Corporate income tax could lower their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures. Currently, they know that by spending that 10 million, they save paying that 35% on taxes & thereby that 10 million is really 6.5 million. With the new 20% rate, spending that 10 million will really be 8 million. Less incentive with the lower rate.

A lower Corporate income tax could raise their investment in buildings, machinery & labor. Say they are thinking about spending 10 million dollars on tax deductible expenditures.

They're projecting $1 million in annual pre-tax profits. Are they more likely to make the investment if they can keep $650,000 a year......or if they can keep $800,000 a year?

Every time there talk of increasing corporate taxes, a band of morons runs in circles screaming how corporations don't pay taxes, their customers do & thereby we will end up paying more.

The tax increase is paid in the form of higher prices, lower income for employees and lower dividends for owners.

Republicans know cutting the corp rate does not create jobs.

So why do liberals constantly whine about inversions?

 

[Kosh]

Another far left drone that proves they do not understand anything in reality.

They just run these debunked religious narratives.

Seriously you can not make this stuff up!

and yet i see nothing from you countering what he is saying....

Yep! You did not offer anything!

Maybe next time you should!

 

[WinterBorn]

There is actually a reasonable reason for having very high corporate taxes.

The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.

I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.

 

[Toddsterpatriot]

There is actually a reasonable reason for having very high corporate taxes.

The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better. All of that increases the financial worth of the business, thereby giving the owners a more valuable asset, while still keeping taxes from killing them.

I don't agree with this particular reasoning. But, in the interest of fairness (something rare on these forums), I thought it worth mentioning.

The corporate/business taxes are only applied on profits. If a business wants to shield their tax liability, they can invest in expansion or growth, thereby showing a much smaller profit, while also hiring more people or paying the existing people better

You bet! Absolutely!

All of that increases the financial worth of the business

Wait a minute, the financial worth of the business is based on profit you can actually take out of the business.
If you can never take any profit out, why the hell are you reinvesting?
If you can never take any profit out, why would you ever start a business in the first place?