How will the working people benefit by Bide increasing the Corporate Tax Rate from 21% to 28?

[usmcstinger]

I would appreciate both sides of the coin.

 

[excalibur]

They won't. In fact, prices for things will increase as the higher taxes are passed along. So a negative on several fronts.

 

[Dadoalex]

I would appreciate both sides of the coin.

Can't remember the guy's name. But, when asked why he robbed banks he said "that's where the money is."

We need infrastructure which will benefit everyone.
We need money to pay for infrastructure.
Go where the money is.

 

[Crepitus]

The government can pay the welfare for all the people the corporations are underpaying.

 

[Winston]

They won't. In fact, prices for things will increase as the higher taxes are passed along. So a negative on several fronts.

Really. So show me the price drops when corporate income taxes were cut. You can't, because they weren't, and the economic reality is that the price of something has nothing to do with cost, or the corporate tax rate and everything to do with demand.

And riddle me this. All those bonuses that were passed out when the corporate tax rate was cut, how come they were passed out before the corporate tax rate went into effect and how come they are not passing them out now, with the lower corporate tax rate? Show me one company, just one, that handed out bonuses under the lower corporate tax rate.

First, the hard reality of the matter is that the weighted average cost of capital is inversely related to the marginal tax rate. That is an accounting fact. And then there is an economic principle called opportunity cost. Granted, it is poorly understood. The truth is a stay at home mom operating on a shoestring budget knows more about opportunity cost than most Economic professors. But here is the deal. The corporate tax rate is currently 21%. A corporation has a million dollars in profit as they close the year out. If they invest that money it will cost them $799,000. If they are looking for a ten year return on that investment they will need to make $79,900 a year. The "opportunity cost" of not making the investment is $210,000 in taxes paid.

Now, the corporate tax rate is 28%. The cost of that same one million dollar investment is now $792,000. Now they only need to make $79,200 a year to get that ten year return. The opportunity cost of not making the investment is now $280,000. In which scenario is the company more likely to invest? In which scenario is the IRR, that is internal rate of return, lower in order to justify the investment? And take note, the opportunity cost of NOT making the investment is higher under the higher corporate tax rate.

 

[Dont Taz Me Bro]

The government can pay the welfare for all the people the corporations are underpaying.

But that's not what the increase is for

 

[dblack]

The government can pay the welfare for all the people the corporations are underpaying.

But that's not what the increase is for

Shhhh!

 

[Winston]

I would appreciate both sides of the coin.

Can't remember the guy's name. But, when asked why he robbed banks he said "that's where the money is."

We need infrastructure which will benefit everyone.
We need money to pay for infrastructure.
Go where the money is.

Willie Sutton, that is the guy's name. And he claims he never said it. But the reality is corporations benefit more from infrastructure spending than any other entity. It only makes sense that they should pay for it.

 

[candycorn]

If they drive on public roads that will be improved under the infrastructure plan...they will benefit. As will we all.

 

[Crepitus]

The government can pay the welfare for all the people the corporations are underpaying.

But that's not what the increase is for

Then we need another one. Either that or the bastards can start paying fair wages. It isn't right for the government to subsidize their payrolls like they do.

 

[dblack]

The government can pay the welfare for all the people the corporations are underpaying.

But that's not what the increase is for

Then we need another one.

Of course!

 

[HenryBHough]

Supermarket prices are already rising weekly in anticipation of Xiden's confiscatory scheme. Been shopping lately? (properly attired in submission scarves and knee-high bullshit proof boots!)

 

[Care4all]

Repair Roads, bridges, expansion of health care clinics, repair, improve and secure our electric grid, expand and improve broadband, clean water works improvement and repair, telephone lines and satellite advances, school renovations and technology improvements, railway expansion, airport repair and improvements, repair, expand and improve nursing care facilities...to name just a few....

Most all of which corporations will benefit from...or their future workers will benefit from....

 

[themirrorthief]

I would appreciate both sides of the coin.

Can't remember the guy's name. But, when asked why he robbed banks he said "that's where the money is."

We need infrastructure which will benefit everyone.
We need money to pay for infrastructure.
Go where the money is.

so why does only five percent of Obidens infrastructure bill go to infrastructure

 

[Care4all]

I would appreciate both sides of the coin.

Can't remember the guy's name. But, when asked why he robbed banks he said "that's where the money is."

We need infrastructure which will benefit everyone.
We need money to pay for infrastructure.
Go where the money is.

so why does only five percent of Obidens infrastructure bill go to infrastructure

You are simply regurgitating a lie that your right wing media masters told you to use as a defense tactic, for the republicans in congress not supporting the bill.... McConnell told his repubs not to vote for anything that Biden puts forward, for the next 4 years.... Sad, but true.

 

[danielpalos]

I would appreciate both sides of the coin.

By committing to upgrading infrastructure so we have something useful to show for it.

 

[usmcstinger]

They won't. In fact, prices for things will increase as the higher taxes are passed along. So a negative on several fronts.

Really. So show me the price drops when corporate income taxes were cut. You can't, because they weren't, and the economic reality is that the price of something has nothing to do with cost, or the corporate tax rate and everything to do with demand.

And riddle me this. All those bonuses that were passed out when the corporate tax rate was cut, how come they were passed out before the corporate tax rate went into effect and how come they are not passing them out now, with the lower corporate tax rate? Show me one company, just one, that handed out bonuses under the lower corporate tax rate.

First, the hard reality of the matter is that the weighted average cost of capital is inversely related to the marginal tax rate. That is an accounting fact. And then there is an economic principle called opportunity cost. Granted, it is poorly understood. The truth is a stay at home mom operating on a shoestring budget knows more about opportunity cost than most Economic professors. But here is the deal. The corporate tax rate is currently 21%. A corporation has a million dollars in profit as they close the year out. If they invest that money it will cost them $799,000. If they are looking for a ten year return on that investment they will need to make $79,900 a year. The "opportunity cost" of not making the investment is $210,000 in taxes paid.

Now, the corporate tax rate is 28%. The cost of that same one million dollar investment is now $792,000. Now they only need to make $79,200 a year to get that ten year return. The opportunity cost of not making the investment is now $280,000. In which scenario is the company more likely to invest? In which scenario is the IRR, that is internal rate of return, lower in order to justify the investment? And take note, the opportunity cost of NOT making the investment is higher under the higher corporate tax rate.

When Corporate Taxes are increased the Companies need to take measures continue to be profitable: Increase the prices of the goods and services they provide. ( Competition is world wide now )Countries with lower Corporate Income Taxes tend to attract Companies to relocate to them. China is a perfect example of this fact. The other options are laying off employees at every level( use to be called Down Sizing ) and increase work products by using Robots and other electronic devices and programs.
Companies on the Stock Exchanges can decrease or no longer pay dividends. This results in the loss of investors which cuts off their revenue stream.
The most important factors in an economy are Supply, Demand and Price. If you don't understand the relationships you will never understand Economics 101!

 

[Winston]

They won't. In fact, prices for things will increase as the higher taxes are passed along. So a negative on several fronts.

Really. So show me the price drops when corporate income taxes were cut. You can't, because they weren't, and the economic reality is that the price of something has nothing to do with cost, or the corporate tax rate and everything to do with demand.

And riddle me this. All those bonuses that were passed out when the corporate tax rate was cut, how come they were passed out before the corporate tax rate went into effect and how come they are not passing them out now, with the lower corporate tax rate? Show me one company, just one, that handed out bonuses under the lower corporate tax rate.

First, the hard reality of the matter is that the weighted average cost of capital is inversely related to the marginal tax rate. That is an accounting fact. And then there is an economic principle called opportunity cost. Granted, it is poorly understood. The truth is a stay at home mom operating on a shoestring budget knows more about opportunity cost than most Economic professors. But here is the deal. The corporate tax rate is currently 21%. A corporation has a million dollars in profit as they close the year out. If they invest that money it will cost them $799,000. If they are looking for a ten year return on that investment they will need to make $79,900 a year. The "opportunity cost" of not making the investment is $210,000 in taxes paid.

Now, the corporate tax rate is 28%. The cost of that same one million dollar investment is now $792,000. Now they only need to make $79,200 a year to get that ten year return. The opportunity cost of not making the investment is now $280,000. In which scenario is the company more likely to invest? In which scenario is the IRR, that is internal rate of return, lower in order to justify the investment? And take note, the opportunity cost of NOT making the investment is higher under the higher corporate tax rate.

When Corporate Taxes are increased the Companies need to take measures continue to be profitable: Increase the prices of the goods and services they provide. ( Competition is world wide now )Countries with lower Corporate Income Taxes tend to attract Companies to relocate to them. China is a perfect example of this fact. The other options are laying off employees at every level( use to be called Down Sizing ) and increase work products by using Robots and other electronic devices and programs.
Companies on the Stock Exchanges can decrease or no longer pay dividends. This results in the loss of investors which cuts off their revenue stream.
The most important factors in an economy are Supply, Demand and Price. If you don't understand the relationships you will never understand Economics 101!

There are so many things wrong with your post that I don't know where to begin. From the first sentence, when corporate taxes are increased the companies need to take measures to continue to be profitable. WTF. What the hell does corporate taxes have to do with profit margins? You want to explain that to me. Because from what I know, well corporate taxes are paid on profits. You got to make a profit first, then you can worry about taxes. You seem to believe that corporate taxes are part of the cost of goods sold or something, that is like putting the cart before the horse.

And China is certainly not an example of a country corporations would flee to in order to get a lower tax rate. Their corporate tax rate is 25%. Corporations go to China to get cheap labor, and that is quickly evaporating as China's middle class continues to grow and workers are demanding ever increasing wages. Corporations also go to China to make goods for the Chinese market.

Replacing labor with robots. Well I got news for you hoss. That shit is going to happen no matter what the corporate tax rate is. I mean it boggles my mind, do you think a company's board sits around and goes, well hell, our taxes are cheap so we don't need to invest in any automation to get increased efficiencies.

But the really funny one, the loss of investors cutting off revenue streams. What, do you think when someone purchases a stock they buy it from the company? When you purchase a hundred shares of Amazon, or even Gamestop, neither Amazon or Gamestop gets two cents. Hell, if anything, if a corporate tax increases negatively impacts the equity markets it stands to reason that the bond market will pick up the slack. Now the bond market can have an impact on a company, it can lower their cost of borrowing.

I love it when some yahoo slings around words like supply, demand, and price, and believe they have a grasp of Economics. Better still, that they somehow understand the equity markets and corporate finance. Honestly, I laid the situation out pretty clearly. You can take from it what you will, but understand it comes from lectures in some of the finest business schools in the country. I have studied under some of the finest Economics and Finance professors in the country, did the grunt work for Reagan's OMB director, and currently manage literally millions of dollars for clients that have stuck with me for decades.

 

[Dadoalex]

I would appreciate both sides of the coin.

Can't remember the guy's name. But, when asked why he robbed banks he said "that's where the money is."

We need infrastructure which will benefit everyone.
We need money to pay for infrastructure.
Go where the money is.

so why does only five percent of Obidens infrastructure bill go to infrastructure

So why don't you stay on topic? Too complex?

 

[Dogmaphobe]

I am the head of a corporation. I am also a working person.

Uneducated leftists like those in this thread use the word "corporation" like they do "poopoohead" They don't know what it IS. They just know it's ickypoo.

Encorporation allows a business owner to seperate his business and private lives and there millions of corporations like my own that are quite small. In my case, my net profit is my income as it is with so many others.

The implications of raising my taxes should be obvious to any thinking person, but unfortunately, the children who use the word corporation as a dirty word are incapable of thought.

There seems to be more of these uneducated dolls all the time.