Tax cuts for business are stupid

Discussion in 'Current Events' started by RealDave, Nov 10, 2017.

  1. WinterBorn
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    WinterBorn Gold Member

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    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.
     
  2. JoeMoma
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    JoeMoma Gold Member

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    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.
     
  3. WinterBorn
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    WinterBorn Gold Member

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    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.
     
  4. Weatherman2020
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    Weatherman2020 Educating Libs Since 1978

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    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.
     
  5. JoeMoma
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    JoeMoma Gold Member

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    Yeah, people might have to eat beans and rice to be able to afford gas for their cars.
     
  6. Weatherman2020
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    Weatherman2020 Educating Libs Since 1978

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    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.
     
  7. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    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?
     
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  8. Kosh
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    Kosh Gold Member Supporting Member

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    Yep! You did not offer anything!

    Maybe next time you should!
     
  9. WinterBorn
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    WinterBorn Gold Member

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    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.
     
  10. Toddsterpatriot
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    Toddsterpatriot Platinum Member

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    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?
     

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