USAs high tax and laffer curve

Discussion in 'Economy' started by Euro, Jun 8, 2012.

  1. Euro
    Offline

    Euro Senior Member

    Joined:
    Aug 27, 2011
    Messages:
    316
    Thanks Received:
    25
    Trophy Points:
    51
    Location:
    Scandinavia
    Ratings:
    +26
    USA world highest corporate tax but not much revenue.

    To optimize the tax revenue a lower tax is needed and loopholes and populistic political decission must be ended.

    A lower corporate tax will in the Laffer curve give a higher tax income for the government. The curve shows that a medium tax rate is the optimum, and Norway maximises its proffits with a medium tax rate. USA has the highest tax rate and one of the lowest revenues. I also find it odd that what they call the land of freedom etc. has the highest corporate tax in the world? Who would investe and create jobs if the taxes are the highest in the world. Socialist Norway actually has a lower corporate tax than USA. To low taxes as for Ireland isn’t great that either. It is theoretical, but loopholes and populistic politicians destroys the theory that works so well in Norway.

    [​IMG]

    However I think USA has a lot of tax loopholes made by populistic politcians, but with no loopholes it works perfect for Norway. Socialist Norway with a lower tax than USA and also a higher profitt. So why not tighten the loopholes and cut the corporate tax to a lower/medium level
     
    • Thank You! Thank You! x 1
    Last edited: Jun 8, 2012
  2. Rshermr
    Offline

    Rshermr VIP Member

    Joined:
    May 30, 2012
    Messages:
    5,804
    Thanks Received:
    287
    Trophy Points:
    85
    Location:
    LaConner, WA
    Ratings:
    +855
    The real issue is not the tax rate, but the actual tax rate PAID. While we have one of the highest PUBLISHED tax rates, we have among the lowest tax rates PAID. Due to extremely high tax deductions and other loopholes.
    Here is a good investigative piece:
    http://www.nytimes.com/2011/05/03/business/economy/03rates.html
     
  3. Euro
    Offline

    Euro Senior Member

    Joined:
    Aug 27, 2011
    Messages:
    316
    Thanks Received:
    25
    Trophy Points:
    51
    Location:
    Scandinavia
    Ratings:
    +26
    The tax system is very innefficient then and unfair. Have you thought of all the extra bureaucracy, paper work and adminsitration this gives. Not much left when all your taxes ends up in advanced paper work for bureaucrats.
    A flat and lower tax is much simpler. Less bureaucracy more revenue.
     
    Last edited: Jun 8, 2012
  4. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,621
    Thanks Received:
    1,132
    Trophy Points:
    205
    Ratings:
    +3,065
    A little Econ 101 for you.

    GE has 1000 tax people full time all to pay $0 last year. Its a massive waste of corporate efficiency. The solution is to eliminate the tax since it like any cost is passed on to customers.

    We have it only because liberals hate business and think they are punishing business with the tax. They lack the IQ to know that business is a tax collector not a tax payer. Liberal politicans pander disgracefully to this pure ignorance.
     
  5. Euro
    Offline

    Euro Senior Member

    Joined:
    Aug 27, 2011
    Messages:
    316
    Thanks Received:
    25
    Trophy Points:
    51
    Location:
    Scandinavia
    Ratings:
    +26
    I agree on you on a lower and flater tax. The worlds highest tax on corporations in a recession is a problem, and the bureaucracy to find loopholes to. Taxes should be simple and flat.

    From the Laffer curve you also see that this high tax actually gives the government less income than a lower tax. So it is very stupid to put the worlds highest tax on corporations.
     
  6. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,621
    Thanks Received:
    1,132
    Trophy Points:
    205
    Ratings:
    +3,065
    its very very stupid to have any taxes on business at all since they are merely passed on to us , the consumers in higher prices.
     
  7. Rshermr
    Offline

    Rshermr VIP Member

    Joined:
    May 30, 2012
    Messages:
    5,804
    Thanks Received:
    287
    Trophy Points:
    85
    Location:
    LaConner, WA
    Ratings:
    +855
    Lower taxes and fewer loopholes make sense. However, as soon as you take the old loopholes out, new ones will appear. Look at the deductions for the oil industry. Republican politicians holler like a stuck pig if you try to take them out. If you think that the loopholes came from other than corporations and the wealthy, and their paid politicians, you probably already own some swamp land.
    Cons like the idea of no taxes for companies, saying they are only passed on to the public. However, it does not work that way. Taxes are part of the cost of doing business, providing the services that companies need. Please show me the country in the world that has no taxes on businesses. Don't think you will find one. The corporations will simply get richer when we pay their taxes.
     
  8. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,621
    Thanks Received:
    1,132
    Trophy Points:
    205
    Ratings:
    +3,065
    of course thats 100% and perfectly idiotic and liberal. If any cost like a tax or the cost of a raw material is eliminated at one company the savings must be passed on to customers or a competitor will pass it on through lower prices and bankrupt you.

    Did you ever wonder why a car is priced more than an apple? Its because the true cost must be reflected in the price. Welcome to your first lesson in Econ 101.
     
  9. Rshermr
    Offline

    Rshermr VIP Member

    Joined:
    May 30, 2012
    Messages:
    5,804
    Thanks Received:
    287
    Trophy Points:
    85
    Location:
    LaConner, WA
    Ratings:
    +855
    Ed,

    I did not know that you believed yourself to be an economic scholar. Let me help you to reassess. You are an economics idiot.

    In any basic econ class that goes into micro economics, you will find that price is not determined by cost but by supply and demand. For a number of reasons that would be too complex for you to understand (though quite simple for everyone else). Cost only determines profit margin of the product. If you are stupid enough to price your product based on cost, your competitors will indeed take you out, over time.

    Of course, that is in a case of perfect competition, or the Market System. Of course, if you are GE, or Exxon, then you can price as you are able based on the elasticity of supply (again, I would explain this to you, but probably well beyond your simple mind).

    And no, I never wondered about comparative prices between cars and apples. If you are wondering about that yourself, you should probably be committed. To the rest of us, the issue is obvious.

    So, what you believe is that we should cover tax costs for corporations. And I asked you for examples of where that had been done. Obviously, you failed to find any.

    Let me know when you need your next econ lesson. Hopefully, someone else will do it next time, Schooling idiots is boring.
     
    • Thank You! Thank You! x 1
  10. kiwiman127
    Offline

    kiwiman127 Comfortably Moderate Supporting Member

    Joined:
    Oct 19, 2010
    Messages:
    8,440
    Thanks Received:
    2,586
    Trophy Points:
    315
    Location:
    4th Cleanest City in the World-Minneapolis
    Ratings:
    +3,860
    Corporate America is the biggest user of the US infrastructure. So, you want them to not contribute a penny to enhance and maintain the American infrastructure that is funded by the tax payer? And it's because they can, at will, raise their prices?
    That's thinking like a shill.
     

Share This Page