Corporate Income Taxes

[DGS49]

Yesterday, I read yet another in an infinite line of op-ed pieces on the "problem" of American's corporations not paying their appropriate share of taxes.

Parenthetically, I wonder whether any of these morons are aware of Subchapter S of the internal revenue code, by which corporate income (in small corporations) can be channeled directly to the OWNERS, thus resulting in the corporations (most American corporations, in fact) paying no income taxes at all! Horrors!

But to my main point, consider if you would, the likely results of a reduction in the corporate income tax rate (for C-corps) to ZERO.

(1) No more armies of tax accountants and lawyers strategizing bizarre corporate initiatives to minimize tax burdens.

(2) Corporations making all their decisions on the best way to make money, rather than how to avoid taxes.

(3) Corporate profits going to (a) the shareholders, where they will be TAXED, or (b) the employees (salaries, ,bonuses, benefits), where they will be TAXED, or (c) plowed back into the business, in the form of new equipment, new buildings, R&D, logical acquisitions, and so forth. Which would be kind of a good thing, eh?

One could well argue that such a tax initiative (Zero Corporate Tax) would likely result in more tax revenue coming into the federal coffers, as personal income tax on salaries, bonuses, and dividends.

The U.S. has one of the highest corporate income taxes in the developed world (especially when state taxes and franchise taxes are also included), and one characteristic of the third world is enormously high corporate taxes and fees imposed by governments, because they are too stupid to realize that penalizing businesses is counterproductive.

Are we smart enough to comprehend a counter-intuitive initiative like this?

Clearly, we are not.

 

[waltky]

Granny says, "Dat's right - if dem big ma-glop-olies would pay dey's fair share o' taxes, we wouldn't get soaked by Obama...

WH Predicts: Taxes Will Hit Record $3T in FY14--$29,673 Per Full-Time Worker
November 14, 2013 -- The latest Monthly Treasury Statement, which was released on Wednesday afternoon, relies on the estimate made by the White House Office of Management and Budget to say that federal tax revenues will top $3 trillion for the first time in the nation’s history in fiscal 2014.

In fact, the record $3,023,004,000,000 in tax revenues that the White House is predicting the federal government will rake in during fiscal 2014 not only exceeds the inflation-adjusted revenue taken in by the government in any previous year, it also equals $29,673 in tax revenue for every full-time worker in the country. It is also equals $9,534 for every man, woman and child currently living in the country. Until now, the record-setting year for inflation-adjusted federal tax revenues was fiscal 2007. In that year, the federal government brought in $2,899,644,380,000 in constant 2013 dollars.

If the White House is correct that total federal tax receipts will hit $3,023,004,000,000 in fiscal 2014, that would represent an increase of $123,359,620,000 in constant 2013 dollars over fiscal 2007's record tax haul of $2,899,644,380,000. Real tax revenues this year, according to the White House estimate, will be 4.25 percent higher than they have ever been. According to the Census Bureau, there are now 317,065,976 people in the United States. The $3,023,004,000,000 in taxes the administration plans to collect this fiscal year equals $9,534 for every single one of those 317,065,976 people.

According to the Bureau of Labor Statistics, there were 101,877,000 full-time workers (who usually worked at least 35 hours a week) in the average month during 2012. The $3,023,004,000,000 in taxes the administration plans to collect this year equals $29,673 for each of those full-time workers. For each household where there are two full-time workers, the federal government is planning to collect $59,346 in this fiscal year. In 2012, according to the Census Bureau, the median household income was only $51,017.

At the end of 2012, President Barack Obama struck a deal with Republicans in Congress to enact legislation that increased taxes. The deal included pushing the top income tax rate from 35 percent to 39.6 percent, increasing the top tax rate on dividends and capital gains from 15 percent to 20 percent, and phasing out personal exemptions and deductions starting at an annual income level of $250,000. Despite the record tax revenue, the White House Office of Management and Budget predicts a deficit of $750,369,000,000. That would be an increase from the $680,232,000,000 deficit the Treasury reported for fiscal 2013, which ended on Sept. 30.

WH Predicts: Taxes Will Hit Record $3T in FY14--$29,673 Per Full-Time Worker | CNS News

 

[Billo_Really]

Yesterday, I read yet another in an infinite line of op-ed pieces on the "problem" of American's corporations not paying their appropriate share of taxes.

Parenthetically, I wonder whether any of these morons are aware of Subchapter S of the internal revenue code, by which corporate income (in small corporations) can be channeled directly to the OWNERS, thus resulting in the corporations (most American corporations, in fact) paying no income taxes at all! Horrors!

But to my main point, consider if you would, the likely results of a reduction in the corporate income tax rate (for C-corps) to ZERO.

(1) No more armies of tax accountants and lawyers strategizing bizarre corporate initiatives to minimize tax burdens.

(2) Corporations making all their decisions on the best way to make money, rather than how to avoid taxes.

(3) Corporate profits going to (a) the shareholders, where they will be TAXED, or (b) the employees (salaries, ,bonuses, benefits), where they will be TAXED, or (c) plowed back into the business, in the form of new equipment, new buildings, R&D, logical acquisitions, and so forth. Which would be kind of a good thing, eh?

One could well argue that such a tax initiative (Zero Corporate Tax) would likely result in more tax revenue coming into the federal coffers, as personal income tax on salaries, bonuses, and dividends.

The U.S. has one of the highest corporate income taxes in the developed world (especially when state taxes and franchise taxes are also included), and one characteristic of the third world is enormously high corporate taxes and fees imposed by governments, because they are too stupid to realize that penalizing businesses is counterproductive.

Are we smart enough to comprehend a counter-intuitive initiative like this?

Clearly, we are not.

Fuck that bullshit!

If I don't get a free ride, then they don't get a free ride.

If I have to pay taxes, then they have to pay taxes.

And if I pay 35%, then they should pay 35%.

There's way too much "corporate welfare" going on in this country.

 

[ScienceRocks]

I'd be ok with NO LOOPHOLES and 25% corperate tax.

I think it is very fair.

 

[Care4all]

Granny says, "Dat's right - if dem big ma-glop-olies would pay dey's fair share o' taxes, we wouldn't get soaked by Obama...

WH Predicts: Taxes Will Hit Record $3T in FY14--$29,673 Per Full-Time Worker
November 14, 2013 -- The latest Monthly Treasury Statement, which was released on Wednesday afternoon, relies on the estimate made by the White House Office of Management and Budget to say that federal tax revenues will top $3 trillion for the first time in the nation’s history in fiscal 2014.

In fact, the record $3,023,004,000,000 in tax revenues that the White House is predicting the federal government will rake in during fiscal 2014 not only exceeds the inflation-adjusted revenue taken in by the government in any previous year, it also equals $29,673 in tax revenue for every full-time worker in the country. It is also equals $9,534 for every man, woman and child currently living in the country. Until now, the record-setting year for inflation-adjusted federal tax revenues was fiscal 2007. In that year, the federal government brought in $2,899,644,380,000 in constant 2013 dollars.

If the White House is correct that total federal tax receipts will hit $3,023,004,000,000 in fiscal 2014, that would represent an increase of $123,359,620,000 in constant 2013 dollars over fiscal 2007's record tax haul of $2,899,644,380,000. Real tax revenues this year, according to the White House estimate, will be 4.25 percent higher than they have ever been. According to the Census Bureau, there are now 317,065,976 people in the United States. The $3,023,004,000,000 in taxes the administration plans to collect this fiscal year equals $9,534 for every single one of those 317,065,976 people.

According to the Bureau of Labor Statistics, there were 101,877,000 full-time workers (who usually worked at least 35 hours a week) in the average month during 2012. The $3,023,004,000,000 in taxes the administration plans to collect this year equals $29,673 for each of those full-time workers. For each household where there are two full-time workers, the federal government is planning to collect $59,346 in this fiscal year. In 2012, according to the Census Bureau, the median household income was only $51,017.

At the end of 2012, President Barack Obama struck a deal with Republicans in Congress to enact legislation that increased taxes. The deal included pushing the top income tax rate from 35 percent to 39.6 percent, increasing the top tax rate on dividends and capital gains from 15 percent to 20 percent, and phasing out personal exemptions and deductions starting at an annual income level of $250,000. Despite the record tax revenue, the White House Office of Management and Budget predicts a deficit of $750,369,000,000. That would be an increase from the $680,232,000,000 deficit the Treasury reported for fiscal 2013, which ended on Sept. 30.

WH Predicts: Taxes Will Hit Record $3T in FY14--$29,673 Per Full-Time Worker | CNS News

truly Granny, you should never ever use CNS as a source! DO NOT trust them, ever, without doing your own research to verify what they are saying or implying.

in this case, Federal Taxes are NOT JUST income taxes on individual incomes, there's import taxes, and cigarette taxes and social security taxes and medicare taxes and all corporate taxes etc etc etc that are all collected and pooled in to ''Federal Taxes''....CNS's article skips that point....when they try to put the amount of 29k in taxes per full time worker...imo...i mean, why even say 29k ''per F/T worker''? Why not how much ''per citizen''? What's CNS's point with the $29.6k in taxes per full time worker?

 

[Spiderman]

Yesterday, I read yet another in an infinite line of op-ed pieces on the "problem" of American's corporations not paying their appropriate share of taxes.

Parenthetically, I wonder whether any of these morons are aware of Subchapter S of the internal revenue code, by which corporate income (in small corporations) can be channeled directly to the OWNERS, thus resulting in the corporations (most American corporations, in fact) paying no income taxes at all! Horrors!

But to my main point, consider if you would, the likely results of a reduction in the corporate income tax rate (for C-corps) to ZERO.

(1) No more armies of tax accountants and lawyers strategizing bizarre corporate initiatives to minimize tax burdens.

(2) Corporations making all their decisions on the best way to make money, rather than how to avoid taxes.

(3) Corporate profits going to (a) the shareholders, where they will be TAXED, or (b) the employees (salaries, ,bonuses, benefits), where they will be TAXED, or (c) plowed back into the business, in the form of new equipment, new buildings, R&D, logical acquisitions, and so forth. Which would be kind of a good thing, eh?

One could well argue that such a tax initiative (Zero Corporate Tax) would likely result in more tax revenue coming into the federal coffers, as personal income tax on salaries, bonuses, and dividends.

The U.S. has one of the highest corporate income taxes in the developed world (especially when state taxes and franchise taxes are also included), and one characteristic of the third world is enormously high corporate taxes and fees imposed by governments, because they are too stupid to realize that penalizing businesses is counterproductive.

Are we smart enough to comprehend a counter-intuitive initiative like this?

Clearly, we are not.

Fuck that bullshit!

If I don't get a free ride, then they don't get a free ride.

If I have to pay taxes, then they have to pay taxes.

And if I pay 35%, then they should pay 35%.

There's way too much "corporate welfare" going on in this country.

You don't pay 35%

Do you not understand marginal tax brackets?

And didn't you say in another thread that you qualified for free health insurance?
So what are you lying about being in the 35% bracket or getting free insurance?

 

[Politico]

Yesterday, I read yet another in an infinite line of op-ed pieces on the "problem" of American's corporations not paying their appropriate share of taxes.

Parenthetically, I wonder whether any of these morons are aware of Subchapter S of the internal revenue code, by which corporate income (in small corporations) can be channeled directly to the OWNERS, thus resulting in the corporations (most American corporations, in fact) paying no income taxes at all! Horrors!

But to my main point, consider if you would, the likely results of a reduction in the corporate income tax rate (for C-corps) to ZERO.

(1) No more armies of tax accountants and lawyers strategizing bizarre corporate initiatives to minimize tax burdens.

(2) Corporations making all their decisions on the best way to make money, rather than how to avoid taxes.

(3) Corporate profits going to (a) the shareholders, where they will be TAXED, or (b) the employees (salaries, ,bonuses, benefits), where they will be TAXED, or (c) plowed back into the business, in the form of new equipment, new buildings, R&D, logical acquisitions, and so forth. Which would be kind of a good thing, eh?

One could well argue that such a tax initiative (Zero Corporate Tax) would likely result in more tax revenue coming into the federal coffers, as personal income tax on salaries, bonuses, and dividends.

The U.S. has one of the highest corporate income taxes in the developed world (especially when state taxes and franchise taxes are also included), and one characteristic of the third world is enormously high corporate taxes and fees imposed by governments, because they are too stupid to realize that penalizing businesses is counterproductive.

Are we smart enough to comprehend a counter-intuitive initiative like this?

Clearly, we are not.

Fuck that bullshit!

If I don't get a free ride, then they don't get a free ride.

If I have to pay taxes, then they have to pay taxes.

And if I pay 35%, then they should pay 35%.

There's way too much "corporate welfare" going on in this country.

Yeah except no one pays 35%.

 

[Edgetho]

I knew a guy married to a Venezuelan woman a few years ago. I'd like to tell you she was hot, but she wasn't. About as big around as she was tall.

Anyway, he and I used to 'debate' the pros and cons of Chavez back in the day. I told him flat out that this day would come. He refused to believe it.

It always does. Always, always, always. If the price of Oil ever goes down, Venezuela's economy will completely and utterly collapse. It probably will anyway because -- socialists and dimocraps (same thing) are stupid. And thuggish. And violent. And corrupt.

Did I mention stupid?

But believe me when I tell you, dimocraps would LOVE to do the same thing that the Venezuelan socialists are doing.

dimocrap wet dream --

Venezuela Locks Up 100 “Bourgeois” Businessmen For The Crime Of Capitalism

Watching Venezuela commit economic and political suicide is incredibly instructive for those that may not have lived thru earlier iterations of Communist dictatorships going belly-up. Take a gander at the future if you follow in the progressive mode. The cornerstone in many cases was the nationalizing of large swathes of the economy, such as healthcare…

Nov 14 (Reuters) – Venezuela’s socialist government has arrested more than 100 “bourgeois” businessmen in a crackdown on alleged price-gouging at hundreds of shops and companies since the weekend, President Nicolas Maduro said on Thursday.

“They are barbaric, these capitalist parasites!” Maduro thundered in the latest of his lengthy daily speeches. “We have more than 100 of the bourgeoisie behind bars at the moment.”

The successor to the late Hugo Chavez also said his government was preparing a law to limit Venezuelan businesses’ profits to between 15 percent and 30 percent.

Officials say unscrupulous companies have been hiking prices of electronics and other goods more than 1,000 percent. Critics say failed socialist economic policies and restricted access to foreign currency are behind Venezuela’s runaway inflation.

“Goodyear has to lower its prices even more, 15 percent is not enough, the inspectors have go there straightaway,” Maduro said in his evening address, sending officials to check local operations of the U.S.-based tire manufacturer.

Since the weekend, soldiers and inspectors have gone into 1,400 shops, taken over operations at an electronics firm and a battery-making company, and rounded up a handful of looters.

Keep reading…

- See more at: Weasel Zippers | Scouring the bowels of the internet | Weasel Zippers

 

[AVG-JOE]

The base problem remains the ability of Congress to customize the tax burden for industries, companies and individuals that they deem "special interests".

Fair and simple, Baby. Until that happens, corruption rules.

 

[Billo_Really]

You don't pay 35%

35% of what I make, is taken out of my paycheck.

Do you not understand marginal tax brackets?

Explain it to me.

And didn't you say in another thread that you qualified for free health insurance?

That was one of the plans.

So what are you lying about being in the 35% bracket or getting free insurance?

When I work, 35% is taken out; when I don't, I qualify for one of the more cheaper plans.

 

[Billo_Really]

Yeah except no one pays 35%.

That's what is deducted from every paycheck I get.

 

[Billo_Really]

I'd be ok with NO LOOPHOLES and 25% corperate tax.

I think it is very fair.

And 25% tax on capital gains and dividends.

 

[Mac1958]

You don't pay 35%

35% of what I make, is taken out of my paycheck.

Do you not understand marginal tax brackets?

Explain it to me.

And didn't you say in another thread that you qualified for free health insurance?

That was one of the plans.

So what are you lying about being in the 35% bracket or getting free insurance?

When I work, 35% is taken out; when I don't, I qualify for one of the more cheaper plans.

Boy, this doesn't look good.



Anyway, eliminate corporate income taxes and you'll see a flood of international and repatriated capital into our system, the likes of which no one has ever seen. The lefties won't admit this, of course, the last thing they want to do is take the boot off the throat of business and free enterprise -- the federal bureaucracy is far more trustworthy, ha ha -- but that's what would happen.

Won't happen, of course.

.

 

[editec]

You could drop corporate taxes to ZERO (some companies already have) but they are not coming back on shore because the COST OF LABOR in the USA is about 10 times higher than the third world.

 

[Billo_Really]

You could drop corporate taxes to ZERO (some companies already have) but they are not coming back on shore because the COST OF LABOR in the USA is about 10 times higher than the third world.

Then we offer incentives for manufacturing in this country and penalties for ones that don't.

 

[Billo_Really]

Boy, this doesn't look good.



Anyway, eliminate corporate income taxes and you'll see a flood of international and repatriated capital into our system, the likes of which no one has ever seen. The lefties won't admit this, of course, the last thing they want to do is take the boot off the throat of business and free enterprise -- the federal bureaucracy is far more trustworthy, ha ha -- but that's what would happen.

Won't happen, of course.

.

Oh bullshit! Corporations are sitting on $6 trillion in record profits and still we have no jobs.

 

[Mac1958]

You could drop corporate taxes to ZERO (some companies already have) but they are not coming back on shore because the COST OF LABOR in the USA is about 10 times higher than the third world.

Labor costs have always been higher here, and that's not the point. INVESTMENT capital would flood to us because it has nowhere else to go. Not even close. And investment capital demands to be invested. The uncertainty that is paralyzing much of corporate America would be flushed away faster than shit through a goose.

Great visual there.

.

 

[Mac1958]

Boy, this doesn't look good.



Anyway, eliminate corporate income taxes and you'll see a flood of international and repatriated capital into our system, the likes of which no one has ever seen. The lefties won't admit this, of course, the last thing they want to do is take the boot off the throat of business and free enterprise -- the federal bureaucracy is far more trustworthy, ha ha -- but that's what would happen.

Won't happen, of course.

.

Oh bullshit! Corporations are sitting on $6 trillion in record profits and still we have no jobs.

And why do you suppose that is?

Why are corporations sitting on about $2T (not 6) of capital? It can't be that CEO's are overpaid, that money is not going to them.

Go ahead, lay your business economics expertise on us.

.

 

[Billo_Really]

And why do you suppose that is?

Why are corporations sitting on about $2T (not 6) of capital? It can't be that CEO's are overpaid, that money is not going to them.

Go ahead, lay your business economics expertise on us.

.

Because there's no demand in the marketplace.

Once you put the middle class back to work, demand will increase and corporations will start investing again. It's not rocket science.

70% of our economy is consumer spending.

 

[Mac1958]

And why do you suppose that is?

Why are corporations sitting on about $2T (not 6) of capital? It can't be that CEO's are overpaid, that money is not going to them.

Go ahead, lay your business economics expertise on us.

.

Because there's no demand in the marketplace.

Once you put the middle class back to work, demand will increase and corporations will start investing again. It's not rocket science.

70% of our economy is consumer spending.

And how does that happen? What's your plan for that?

.