Corporation Taxes

[peach174]

We have the highest corporate tax rate in the world.

That is a nice simplistic rightwing talking point.

We have one of the highest in the world

Japan is the highest - 40.69%
Cemeron is 2nd - 38.5%
We have 35% along with Zambia, Pakistan, Gabon, Angola and Argentina.
Technically we have the highest in the industrial world

 

[Gadawg73]

What do you think that the Taxed Enough Already Party is about? We are feeling the pain.
And YES when Corp taxes are raised it is passed on to the consumer.

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

 

[Flopper]

Businesses do not attempt to pass taxes. They do it period. They are required by law to do so.

What law?

 

[peach174]

Democrats want to raise corp taxes.
You all need to get this , when corp taxes are raised our monthly bills go up people.

 

[JackDan]

What do you think that the Taxed Enough Already Party is about? We are feeling the pain.
And YES when Corp taxes are raised it is passed on to the consumer.

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

I totally agree. What people don't understand is that Corporations ARE People as well, just like you said. When someone files for a corporation, the CORP has all the same rights as a person, and all the same liabilities as one as well.
I feel like the true problem lies in the big corporations like GE, and others who pay little to no taxes. Everyone heard the stories a couple weeks ago about GE running a billion or more yearly net profit, and not paying a single dime in taxes? now that is crazy. America runs on small businesses, and those are the business owners that get hit the worst, because their profit is taxed 25-35% before the state and local gets involved. These small companies cannot use the loopholes and strategies that the big business can afford. This needs to change and big corporations need to pay their fair share of the tax pot.

 

[peach174]

Businesses do not attempt to pass taxes. They do it period. They are required by law to do so.

What law?

Our Tax Law
This is why we need to change the Tax law and put in a new one.

 

[JackDan]

I recently met with a consultant of a large Tax firm, and they had plenty of ideas of how to get to my corporation tax rate down from 35% to low teens, somewhere between 10-13% they said. Most of their ideas included shell corporations that would take things like inventory, equipment, employees, and contract them to the original company at a cost that exceeds what they are truly worth. This allows you to increase your expenses on paper and writing it off as a loss, even though nothing has changed. This also widens the corporate veil and decreases overall liability. Small companies cannot utilize loopholes like this and in some instances for small companies it is illegal. Large corporations use this method all the time to sidestep taxes much to the chagrin of the small business owner.

 

[peach174]

Yes our tax law needs to be changed. That will be the next discussion as to what type, fair or sales tax.

 

[peach174]

When taxes are raised on a Corporation you pay as a customer. Be it in monthly bills or a product that you buy.
Example
Let's say you are a corporation and you are selling specialized baby diaper covers - it goes over the diaper. Pick any product that you want to sell. I'm just using diaper covers as an example.
You sell it for 10.00 dollars
When congress raises your corporation taxes by 2.00 dollars, you have to sell that diaper cover for 12.00 dollars.
You have to make a profit in order to stay in business.
The customer is paying for that 2.00 dollar raised tax.
When taxes and regulations get to high where you can no longer make a profit, you move the company to a foreign country (like India) and then you pay as an import.
Taxes are then going to India which is much smaller and very little regulations and America will only receive import duties.
America looses taxes and you the customer gets shafted by having to pay for that extra 2.00 raised tax.
Government is the problem here not corporations.
We have a win win situation when corporate taxes are lowered.
Corporations stay here (jobs for Americans) and you as a customer can afford to buy more things because the product is cheaper.

 

[Gadawg73]

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

I totally agree. What people don't understand is that Corporations ARE People as well, just like you said. When someone files for a corporation, the CORP has all the same rights as a person, and all the same liabilities as one as well.
I feel like the true problem lies in the big corporations like GE, and others who pay little to no taxes. Everyone heard the stories a couple weeks ago about GE running a billion or more yearly net profit, and not paying a single dime in taxes? now that is crazy. America runs on small businesses, and those are the business owners that get hit the worst, because their profit is taxed 25-35% before the state and local gets involved. These small companies cannot use the loopholes and strategies that the big business can afford. This needs to change and big corporations need to pay their fair share of the tax pot.

GE is so many different corporate entities it is mind boggling.
Their American entities paid no taxes as they had no profits on those entities to tax. Keep in mind that tax law enables them to pass debt and capital expenditures around to the countries with a high tax rate, the US, and carry the high profits with little to no "writeoffs" on the entities in countries with little or no taxes on corporate profits.
Corporations are owned by shareholders. If I own shares I want to do business in any country where the profits are higher.

 

[Toro]

I recently met with a consultant of a large Tax firm, and they had plenty of ideas of how to get to my corporation tax rate down from 35% to low teens, somewhere between 10-13% they said. Most of their ideas included shell corporations that would take things like inventory, equipment, employees, and contract them to the original company at a cost that exceeds what they are truly worth. This allows you to increase your expenses on paper and writing it off as a loss, even though nothing has changed. This also widens the corporate veil and decreases overall liability. Small companies cannot utilize loopholes like this and in some instances for small companies it is illegal. Large corporations use this method all the time to sidestep taxes much to the chagrin of the small business owner.

Go learn about how companies transfer intellectual property to low tax offshore jurisdictions and how intercompany transfer pricing for that property works. You'll realize why companies spend an enormous amount of money lobbying in DC.

 

[Gadawg73]

I recently met with a consultant of a large Tax firm, and they had plenty of ideas of how to get to my corporation tax rate down from 35% to low teens, somewhere between 10-13% they said. Most of their ideas included shell corporations that would take things like inventory, equipment, employees, and contract them to the original company at a cost that exceeds what they are truly worth. This allows you to increase your expenses on paper and writing it off as a loss, even though nothing has changed. This also widens the corporate veil and decreases overall liability. Small companies cannot utilize loopholes like this and in some instances for small companies it is illegal. Large corporations use this method all the time to sidestep taxes much to the chagrin of the small business owner.

Go learn about how companies transfer intellectual property to low tax offshore jurisdictions and how intercompany transfer pricing for that property works. You'll realize why companies spend an enormous amount of money lobbying in DC.

FAIR TAX ends all of that over night.

 

[Flopper]

Although I think we need to lower corporate tax rates as well as eliminate loopholes, I don't think Congress is in the mood to reduce any taxes considering the size of the deficit, more likely they will increase. The difference in corporate tax rates in the US and abroad clearly encourage US companies to do business overseas.

 

[Flopper]

High US corporation taxes are one reason why some of our companies moveoperations offshore to more tax friendly countries. It is also one reason why foreign business investors and entrepeneurs avoid the US when starting up or expanding their foreign businesses. Not the only reason of course, there also the ridiculous costs of complying with our burdensome regulations and other issues.

I'd be okay with doing away with corporation taxes altogether, as a way of getting more capital back here and attracting more investments. I believe the lost revenue form that is about 200 billion, but I think that would be offset by a wider tax base resulting from more employees being hired and also less expenditures going out for unemployment and other welfare programs. Won't happen though, the Dems would have a cow.

I favor cutting corporate rates and eliminating loopholes because I think it will help steam the flow of businesses moving overseas. I'm less confident that it will stimulate business expansion. Just as increases in taxes will usually flow to the consumer, tax cuts at this time are more likely to flow to the owners in form increase profits. The most important factor in determining expansion is the business outlook not tax cuts. Tax cuts only provide an incentive to expand. They don't guarantee economic expansion.

If the government is running a high deficit with a sluggish economy, cutting taxes can be a risky proposition. If the economic outlook becomes negative, businesses are going to save the tax cut dollars rather than invest in expansion. And if the economy turns down, then the Treasury get's hit with a double whammy. Less revenue due to a weak economy and less revenue due to the lower rates.

 

[Skull Pilot]

What do you think that the Taxed Enough Already Party is about? We are feeling the pain.
And YES when Corp taxes are raised it is passed on to the consumer.

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

My business is an s corp so I need no explanation on taxes.

The original post mentioned federal state and local taxes that are charged to a customer saying that those taxes were being passed on to the consumer when they are not.

Those taxes mentioned in the original post are levied on the consumer not on the business. The business merely collects them for the government.

 

[Gadawg73]

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

My business is an s corp so I need no explanation on taxes.

The original post mentioned federal state and local taxes that are charged to a customer saying that those taxes were being passed on to the consumer when they are not.

Those taxes mentioned in the original post are levied on the consumer not on the business. The business merely collects them for the government.

All businesses and corporations "merely collects them (taxes) for the government."
They never pay any taxes. My business pays no taxes. PEOPLE pay taxes.

 

[Skull Pilot]

They are exactly the same thing to a business. I own 3 corporations.
NO business survives unless they collect ALL taxes from people.
Corporations are PEOPLE.
Every penny that a business is taxed on corporate earnings is a penny that the shareholders do not get.
Corporations never pay any taxes. People always pay taxes.
I know. I own 3 for 30 years.

My business is an s corp so I need no explanation on taxes.

The original post mentioned federal state and local taxes that are charged to a customer saying that those taxes were being passed on to the consumer when they are not.

Those taxes mentioned in the original post are levied on the consumer not on the business. The business merely collects them for the government.

All businesses and corporations "merely collects them (taxes) for the government."
They never pay any taxes. My business pays no taxes. PEOPLE pay taxes.

semantics

 

[snjmom]

If people and corporations are the same, why incorporate?

 

[Cuyo]

What do you think that the Taxed Enough Already Party is about? We are feeling the pain.
And YES when Corp taxes are raised it is passed on to the consumer.

You are obviously confused by the difference between taxes levied on corporate earnings and taxes levied on you but collected on behalf of the government by businesses

Your like some people who steal from stores and thinks that they are sticking it to the company. When in fact the company puts the loss on to the customer.
If they didn't they would go out of business. Same thing with corporation taxes. If they did not pass the tax on to the customer they would go out of business.
So when corporation taxes are raised , your montly bill goes up.

Yeah. Damn overbearing gubmint.

We should probably make corporations exempt from paying any sort of fines too, right? Cause they'll just pass that on to the customer too.

In fact, we should make sure they have no bills at all, right? Shouldn't the government pay their rent and utilities? Maybe even salaries? All those pesky bills are just "Being passed on to the consumer," right?

 

[Gadawg73]

If people and corporations are the same, why incorporate?

Who said they are the same?