Big companies 0% taxes?!

[andy753]

Thanks for your answer Youch, good and educated.

I'm still waiting for an answer from Mr H. I've asked him a few times, I know he's still reading this, and yet he refuses to answer my original question, just keeps spewing nonsense and starting crap. Is that the definition of an internet troll?

 

[andy753]

Thanks Rikurzen, I knew there was intelligent life on this board. I imagine overhauling the tax code would be about as complicated as starting a new health care system.......hahaha.

I've been with my current accounting firm for 8 of my last 11 years, and they saved me a lot of money from the mistakes my first 2 accountants made. I trust and believe them, and I cried a little tear when they said I was crazy for even beginning to think that I could do my taxes the same as those companies who pay little or none. They said "thats the way it is" and we both laughed about it, but it sucks. Yeah, I'm a little jealous, I would love to lower my tax rate even 5% if I could find a loophole to do it.

 

[Rikurzhen]

Thanks Rikurzen, I knew there was intelligent life on this board. I imagine overhauling the tax code would be about as complicated as starting a new health care system.......hahaha.

I've been with my current accounting firm for 8 of my last 11 years, and they saved me a lot of money from the mistakes my first 2 accountants made. I trust and believe them, and I cried a little tear when they said I was crazy for even beginning to think that I could do my taxes the same as those companies who pay little or none. They said "thats the way it is" and we both laughed about it, but it sucks. Yeah, I'm a little jealous, I would love to lower my tax rate even 5% if I could find a loophole to do it.

Ask your accountants if your corporate organization structure entails a double taxation penalty. Do you pay taxes on corporate profit, pay taxes on your salary and then pay taxes on your dividends which you distribute to yourself? I'm betting you don't. Large corporations do though.

 

[andy753]

Thanks Rikurzen, I knew there was intelligent life on this board. I imagine overhauling the tax code would be about as complicated as starting a new health care system.......hahaha.

I've been with my current accounting firm for 8 of my last 11 years, and they saved me a lot of money from the mistakes my first 2 accountants made. I trust and believe them, and I cried a little tear when they said I was crazy for even beginning to think that I could do my taxes the same as those companies who pay little or none. They said "thats the way it is" and we both laughed about it, but it sucks. Yeah, I'm a little jealous, I would love to lower my tax rate even 5% if I could find a loophole to do it.

Ask your accountants if your corporate organization structure entails a double taxation penalty. Do you pay taxes on corporate profit, pay taxes on your salary and then pay taxes on your dividends which you distribute to yourself? I'm betting you don't. Large corporations do though.

Oh man, I wish I could answer your question without sounding like an idiot. As the business has grown over the years, the accounting has gone over my head, at least 90% of it. The first few years I understood 99% of it, but I've changed structure twice in the last 11 years to save money, and I still feel like I pay more than Chevron does.

When I met my wife, the mother in law said I had to go see a CPA who used to work for the tax commision, and he would save me thousands. After paying him hundreds, he said my current accountant is doing awesome and I'm paying about as little as I can. He sent me to his buddy, who I paid a $200 dollar bottle of whiskey to look my taxes over, and he said the same think. So after paying those guys extra to double check my taxes, I'm currently happy with my guy. Now if I could only get my guy to show me how to lie and cheat and steal.......hahahaha

 

[Rikurzhen]

A subchapter S corporation:

An S corporation, for United States federal income tax purposes, is a closely held corporation that makes a valid election to be taxed under Subchapter S of Chapter 1 of the Internal Revenue Code. In general, S corporations do not pay any federal income taxes. Instead, the corporation's income or losses are divided among and passed through to its shareholders. The shareholders must then report the income or loss on their own individual income tax returns.​

 

[andy753]

Yep, that's me, an S corp. If you read my above post, the tax man from the tax commission was saying the only way I could get around paying no taxes is to do like some CEO's do, they pay themselves $1.00 per year. Then he said it gets really crazy with how things go from there, with pay and profit distribution and other foreign language stuff , and the size of my business isn't even close to the size of business' that do it. And then he said I could do it but it wouldn't work, then he gave me a beer and we talked about football. Then I said screw it, I will pay my taxes.

 

[Rikurzhen]

Yep, that's me, an S corp. If you read my above post, the tax man from the tax commission was saying the only way I could get around paying no taxes is to do like some CEO's do, they pay themselves $1.00 per year. Then he said it gets really crazy with how things go from there, with pay and profit distribution and other foreign language stuff , and the size of my business isn't even close to the size of business' that do it. And then he said I could do it but it wouldn't work, then he gave me a beer and we talked about football. Then I said screw it, I will pay my taxes.

Then what are you complaining about. Read the above post/definition again. You pay no federal corporate income taxes. What you're paying are income taxes on your personal income, income which is derived from your business, both as salary and profits, but the profits are not taxed before they get to you.

As for that $1 per year tactic, that Warren Buffett, beloved by the Left, ripping off taxpayers. He chooses to take his income in the form of capital gains which are taxed at a lower rate than as income which is taxed at a higher rate. Warren has it within his power to pay himself a straight $100,000,000 per year as a salary and pay a huge tax bill instead of taking that money as a capital gain and paying a lower rate of tax. This really isn't something that you, a small businessman can do. Despite the fact that you own a business you're taxed just like those people who earn salaries as employees.

 

[andy753]

Yep, that's me, an S corp. If you read my above post, the tax man from the tax commission was saying the only way I could get around paying no taxes is to do like some CEO's do, they pay themselves $1.00 per year. Then he said it gets really crazy with how things go from there, with pay and profit distribution and other foreign language stuff , and the size of my business isn't even close to the size of business' that do it. And then he said I could do it but it wouldn't work, then he gave me a beer and we talked about football. Then I said screw it, I will pay my taxes.

Then what are you complaining about. Read the above post/definition again. You pay no federal corporate income taxes. What you're paying are income taxes on your personal income, income which is derived from your business, both as salary and profits, but the profits are not taxed before they get to you.

As for that $1 per year tactic, that Warren Buffett, beloved by the Left, ripping off taxpayers. He chooses to take his income in the form of capital gains which are taxed at a lower rate than as income which is taxed at a higher rate. Warren has it within his power to pay himself a straight $100,000,000 per year as a salary and pay a huge tax bill instead of taking that money as a capital gain and paying a lower rate of tax. This really isn't something that you, a small businessman can do. Despite the fact that you own a business you're taxed just like those people who earn salaries as employees.

Thanks for the explaining that in a little more simple terms than my accountant. I just get frustrated, like everyone else, the more I work, the more I work the more I pay. Yes, I'm crying the blues.

I know there's about a million questions and variables, but do you think an S corp is the best way to do it? 6 employees, about 1.5 million in sales, and just basically we sell parts and accessories and work on motorcycles. I should have went to school and became big business man!

 

[Rikurzhen]

Yep, that's me, an S corp. If you read my above post, the tax man from the tax commission was saying the only way I could get around paying no taxes is to do like some CEO's do, they pay themselves $1.00 per year. Then he said it gets really crazy with how things go from there, with pay and profit distribution and other foreign language stuff , and the size of my business isn't even close to the size of business' that do it. And then he said I could do it but it wouldn't work, then he gave me a beer and we talked about football. Then I said screw it, I will pay my taxes.

Then what are you complaining about. Read the above post/definition again. You pay no federal corporate income taxes. What you're paying are income taxes on your personal income, income which is derived from your business, both as salary and profits, but the profits are not taxed before they get to you.

As for that $1 per year tactic, that Warren Buffett, beloved by the Left, ripping off taxpayers. He chooses to take his income in the form of capital gains which are taxed at a lower rate than as income which is taxed at a higher rate. Warren has it within his power to pay himself a straight $100,000,000 per year as a salary and pay a huge tax bill instead of taking that money as a capital gain and paying a lower rate of tax. This really isn't something that you, a small businessman can do. Despite the fact that you own a business you're taxed just like those people who earn salaries as employees.

Thanks for the explaining that in a little more simple terms than my accountant. I just get frustrated, like everyone else, the more I work, the more I work the more I pay. Yes, I'm crying the blues.

I know there's about a million questions and variables, but do you think an S corp is the best way to do it? 6 employees, about 1.5 million in sales, and just basically we sell parts and accessories and work on motorcycles. I should have went to school and became big business man!

It's probably the best way. Your corporation doesn't pay any taxes, whatever profits it earns are passed directly to you and you pay the taxes as income. Any other alternative would involve the corp paying taxes, then distributing what's left over to you as a dividend and now you're getting into complicated stuff.

So pat yourself on the back You own a corporation which pays zero income taxes, just like every other mom and pop operation in America. Now if you could only find a way to not pay income taxes on your personal income you'd be golden.

 

[OnePercenter]

Please describe in vivid detail taxes and percentages you pay. I'm waiting................

I normally don't troll and argue with message board goons, but you've got me hooked. I'm waiting........

Good luck! The biggest complainers tend to pay the least.

Who in the **** invited you to this party?

Whats wrong, getting crowded on the SHORT BUS?

 

[OnePercenter]

Thanks for this.

Sounds like you and I are in similar boats, but with different sails.

Let me ask you this... is any one single expense in operating your business deducted from your taxable income?

Come on now, are you trying to quiz me? You know this answer, and my accountant can answer in specific detail, but pretty much everything on the right side of my balance sheet is deducted from my taxable income.

Now your turn Mr H, how do you feel about big business and corporations paying little or no tax? Are you dodging my question? Are you a politician?

Here's my 2 cents.

Taxes on corporations, large and small, should not exist for corporations don't get to enjoy the profits. No one has ever sat next to a corporation at a theater or on an airliner, a corporation has never sat down to dinner at a fine restaurant or has bought itself a nice yacht.

The profits earned by corporations are ALWAYS passed onto people, the shareholders, and that's where the taxes should be paid.

When we have corporate taxes in the mix studies have found that the cost, or incidence, of paying those taxes doesn't come out of the hide of shareholders but from customers.

The above was a normative position, how things should be. Now here's my position on how things are - those corporations who pay zero taxes are very likely using credits to offset US tax liability, meaning that they've paid taxes in various countries and the US, because of it unique looney policy of taxing worldwide income, offsets what corporations pay to foreign governments in order to avoid double taxation issues.

I don't see a way to avoid this issue without overhauling the crazy tax system which taxes worldwide income.

What about police and fire protection, publicly paid infrastructure improvements, the courts, FAA controllers for our private jets, roadways and the internet so their customers can by their widgets, US Customs when importing?

Let's now discuss the 'looney policy of taxing worldwide income.'

A US company makes sales and profits overseas, then uses those profits to buy more widgets from China to sell in the US.

 

[EdwardBaiamonte]

As I stated, I'm against people or business paying no taxes because of lawyers and loopholes. Does this make me a liberal? Can I call you a racist? You make no sense.

Again, what is your stance on big business paying little or no tax on profits made in the US?

1) corporate tax should be 0%. It is redundant since it is passed on to all of us, like any cost, in the form of higher prices. Plus, being the highest tax in the world it is forcing our corporations to move out to avoid it!!

We have the tax only to pander to the pure ignorance of liberals!.

 

[OnePercenter]

As I stated, I'm against people or business paying no taxes because of lawyers and loopholes. Does this make me a liberal? Can I call you a racist? You make no sense.

Again, what is your stance on big business paying little or no tax on profits made in the US?

1) corporate tax should be 0%. It is redundant since it is passed on to all of us, like any cost, in the form of higher prices. Plus, being the highest tax in the world it is forcing our corporations to move out to avoid it!!

We have the tax only to pander to the pure ignorance of liberals!.

Taxes pay for and corporations use police and fire protection, publicly paid infrastructure improvements, the courts, FAA controllers for our private jets, roadways and the internet so their customers can by their widgets, US Customs when importing?

The US is number 16 of the 20 industrialized nations in ACTUAL TAXES PAID.

 

[EdwardBaiamonte]

As I stated, I'm against people or business paying no taxes because of lawyers and loopholes. Does this make me a liberal? Can I call you a racist? You make no sense.

Again, what is your stance on big business paying little or no tax on profits made in the US?

1) corporate tax should be 0%. It is redundant since it is passed on to all of us, like any cost, in the form of higher prices. Plus, being the highest tax in the world it is forcing our corporations to move out to avoid it!!

We have the tax only to pander to the pure ignorance of liberals!.

Taxes pay for and corporations use police and fire protection, publicly paid infrastructure improvements, the courts, FAA controllers for our private jets, roadways and the internet so their customers can by their widgets, US Customs when importing?

The US is number 16 of the 20 industrialized nations in ACTUAL TAXES PAID.

yes dear they pay little by moving out which is a bad thing not a good thing

also, the corporations pass on the tax like any cost to us in the form of higher prices. Do you understand now?

We have the tax only to pander to the pure ignorance of liberals.

 

[eagle1462010]

Major Corporations have always just passed on the extra cost to the consumer. It's the way it has been for a while. Where I work, it's a very large corporation. The local communities have argued over who gets the taxes and even go to court over it. Why? Because the taxes are very large.

Yet every time you go to the pump you will pay for that extra cost of production.

 

[EdwardBaiamonte]

Major Corporations have always just passed on the extra cost to the consumer. It's the way it has been for a while. Where I work, it's a very large corporation. The local communities have argued over who gets the taxes and even go to court over it. Why? Because the taxes are very large.

Yet every time you go to the pump you will pay for that extra cost of production.

whats wrong with paying for production costs?

 

[eagle1462010]

Major Corporations have always just passed on the extra cost to the consumer. It's the way it has been for a while. Where I work, it's a very large corporation. The local communities have argued over who gets the taxes and even go to court over it. Why? Because the taxes are very large.

Yet every time you go to the pump you will pay for that extra cost of production.

whats wrong with paying for production costs?

There is nothing wrong with it. That is simply business. It's Reality. Which is why the taxes are basically a joke anyway. As someone has already stated, It's a smoke screen.

That better for ya..............

 

[EdwardBaiamonte]

Major Corporations have always just passed on the extra cost to the consumer. It's the way it has been for a while. Where I work, it's a very large corporation. The local communities have argued over who gets the taxes and even go to court over it. Why? Because the taxes are very large.

Yet every time you go to the pump you will pay for that extra cost of production.

whats wrong with paying for production costs?

There is nothing wrong with it. That is simply business. It's Reality. Which is why the taxes are basically a joke anyway. As someone has already stated, It's a smoke screen.

That better for ya..............

yes, we have corporate taxes to pander to the pure ignorance of liberals who don't realize they are paying the corporate taxes in the form of higher prices. Corporations are tax collectors not tax payers.

 

[whitehall]

Let's see, you think you pay too many taxes so the solution is to force businesses to pay more taxes? NY State is advertising that start up companies don't have to pay any taxes including property, sales and anything else for ten years and apparently they still can't get any takers because they are probably freaking lying. Big and small companies pay tax attorneys to find loopholes in the tax law. It's legal and ethical and recommended. Try it.

 

[EdwardBaiamonte]

Let's see, you think you pay too many taxes so the solution is to force businesses to pay more taxes? NY State is advertising that start up companies don't have to pay any taxes including property, sales and anything else for ten years and apparently they still can't get any takers because they are probably freaking lying. Big and small companies pay tax attorneys to find loopholes in the tax law. It's legal and ethical and recommended. Try it.

yes Ireland dropped their rate to 12% and half the big companies in the world moved there. We'd have a huge boom here if we dropped the rate to 0%!! Liberals lack the IQ to understand so we stick with highest rate and corps moving out. Incredible