Plan to Cut Corporate Tax Rate to 15%

[Remodeling Maidiac]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

 

[NightFox]

I'm thinking that most of the extra money will be spent on bonuses for executives, and some of what is left over will be saved for Golden Parachutes.

Without some sort of mandate to spend the saved money in a way that would benefit the little people, why would a corporation do anything else?

That's a very narrow view IMHO, generally speaking corporations aren't the evil empires that some people try to depict them as, ultimately they're answerable to their shareholders which means that shareholder return is paramount, "bonuses" for executives don't meet that standard unless they're required to attract and retain talent that is necessary to maximize returns.

Fair enough...however will shareholders be pleased if tax savings are passed down to consumers through lower retail prices? I can't imagine that they would be...and I don't see any corporation using their tax savings to benefit the American People through increased jobs or lower prices.

Corporations aren't in business to "benefit the American People" nor are they employment agencies, they hire employees when it makes financial sense to do so and they lower prices when they are dictated by the market dynamics (competition and supply/demand). That being said, Corporations provide enormous benefits to society in that they not only produce all the goods and services that provide the standard of living that we enjoy but also provide the primary source for the consumption of labor and enormous amounts of R&D the fruits of which are often spread throughout the economy.

So if you want all the benefits that Corporations (or more succinctly private enterprise) provides one might consider how public policy can facilitate an environment where they can thrive instead of looking at ways that government can loot them more than it already does.

How about keeping the tax rate the way it is...but that companies who make efforts in some of the following benchmarks: increasing employment, decreasing consumer costs, using American made materials, manufacturing in America, etc...would be entitled to have decreases in their tax rate. That way, nothing would be MANDATED, but rather ENCOURAGED, with a tax incentive if achieved.

Because it's not the governments role to dictate to private enterprise how it should conduct business and our corporate tax code is an embarrassment of competition destroying carve outs, subsidies and give-aways not to mention the statutory rates are not only not globally competitive but also a completely divorced from what businesses actually pay. IMHO the corporate rates should be ZERO thus eliminating all the lobbying (legalized bribery and extortion), the unnecessary drain of resouces (accountants and lawyers) and providing the maximum incentive for capital investment, not to mention the fact that those taxes are paid by employees (lower wages), consumers (higher prices) and investors (lower returns).

 

[xotoxi]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

(I have trust in neither the government nor corporations, although I am a 1/300,000,000th shareholder in the government)

 

[toomuchtime_]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Corporate tax windfalls are not what drive job creation. Demand is what drives job creation. Cutting the corporate tax rate in an environment where we need to reduce our deficit and address the national debt is about the worst idea imaginable. Corporate profits have consistently hit record highs each quarter for the last five to six years, so it's not as if corporations are in need of tax relief. Also, tax rates are not what drive price. A combination of supply and demand is what drives price. Corporate tax rates are fine where the are. Over 12 million private sector jobs were created during the Obama era under those tax rates.

If you want a tax policy that will stimulate the economy and create more jobs, cut taxes for the bottom personal income brackets and offset that by raising taxes on the higher income brackets. This is a no brainer, though it seems to escape the republican electorate. Tax cuts for the lower income brackets would provide a boost to aggregate demand, which would lead businesses to hire more employees to meet that demand.

What was the demand for small computers before venture capitalists using new money from Reagan's deregulation and tax cuts provided capital for companies like Apple, Microsoft, etc.? There was none, but the "windfall's from Reagan policies allowed investors to take risks on new investments that eventually drove the prosperity of the 1990's. No amount of middle class tax cuts intended to increase demand could have done this.

There was certainly demand for data processing, and more efficient means of consuming, storing, and sharing data back in the 80's. Personal computers were a vehicle to meet that demand. This is true independent of any regressive tax cuts.

Put another way, personal computers - much less regressive tax cuts - didn't invent the demand for data processing any more than the automobile invented the demand for transportation. You're mistaking technological innovation of an already existing, demanded process with the creation of an entirely new, not-previously-demanded process.

If you want to give the Reagan tax cuts credit for something that they actually created, look no further than our national debt. The trend of ballooning deficit spending and national debt begins in the 80s with Reagan's tax cuts. One could also make the argument that those tax cuts play a role in the skewed distribution of wealth and income that has taken hold over the last several decades as well.

There was no demand for personal computers because hardly anyone knew abou them and major companies like IBM and Polaroid who could have produced them didn't because they understood there was no demand for them. Companies like Apple and Microsoft were producing hardware and software for a small market for tech enthusiasts until financing from venture capitalists eager to invest the money they had made from the deregulation of financial institutions and the break up of stagnant corporations allowed these start ups to produce products that finally did gain the notice of both businesses and individuals. Because of this new source of financing these start ups were able to create products that then created their own demand and that is what fueled the economy of the 1990's. Without the bustling economy Reagan created with tax cuts and deregulation, the financing simply wouldn't have been there to launch these new companies.

 

[da Vinci]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Corporate tax windfalls are not what drive job creation. Demand is what drives job creation. Cutting the corporate tax rate in an environment where we need to reduce our deficit and address the national debt is about the worst idea imaginable. Corporate profits have consistently hit record highs each quarter for the last five to six years, so it's not as if corporations are in need of tax relief. Also, tax rates are not what drive price. A combination of supply and demand is what drives price. Corporate tax rates are fine where the are. Over 12 million private sector jobs were created during the Obama era under those tax rates.

If you want a tax policy that will stimulate the economy and create more jobs, cut taxes for the bottom personal income brackets and offset that by raising taxes on the higher income brackets. This is a no brainer, though it seems to escape the republican electorate. Tax cuts for the lower income brackets would provide a boost to aggregate demand, which would lead businesses to hire more employees to meet that demand.

Define "lower income bracket". It seems to escape the Democrat electorate that the vast majority of the lower income bracket pays zero income tax and even get checks back....which is funded by the higher income brackets who do pay tax.

Obviously "lower income brackets" would the lowest brackets to which we apply tax rates. So this would mean the 15% bracket covering personal income between $9,325 to $37,950, and the 25% bracket covering income between 37,950 to $91,900. The remaining tax brackets - 28%, 33%, 35%, and 39.6% - should be raised progressively to offset the cuts to the 15% and 25% brackets.

 

[Remodeling Maidiac]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

 

[xotoxi]

Because it's not the governments role to dictate to private enterprise how it should conduct business and our corporate tax code is an embarrassment of competition destroying carve outs, subsidies and give-aways not to mention the statutory rates are not only not globally competitive but also a completely divorced from what businesses actually pay. IMHO the corporate rates should be ZERO thus eliminating all the lobbying (legalized bribery and extortion), the unnecessary drain of resouces (accountants and lawyers) and providing the maximum incentive for capital investment, not to mention the fact that those taxes are paid by employees (lower wages), consumers (higher prices) and investors (lower returns).

Good thoughts...

But if corporate rates were zero, how would lobbying be eliminated?

And I understand that the current taxes are paid by employees and consumers, but why would a company paying zero taxes suddenly decide to start paying employees more?

 

[xotoxi]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

 

[da Vinci]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Corporate tax windfalls are not what drive job creation. Demand is what drives job creation. Cutting the corporate tax rate in an environment where we need to reduce our deficit and address the national debt is about the worst idea imaginable. Corporate profits have consistently hit record highs each quarter for the last five to six years, so it's not as if corporations are in need of tax relief. Also, tax rates are not what drive price. A combination of supply and demand is what drives price. Corporate tax rates are fine where the are. Over 12 million private sector jobs were created during the Obama era under those tax rates.

If you want a tax policy that will stimulate the economy and create more jobs, cut taxes for the bottom personal income brackets and offset that by raising taxes on the higher income brackets. This is a no brainer, though it seems to escape the republican electorate. Tax cuts for the lower income brackets would provide a boost to aggregate demand, which would lead businesses to hire more employees to meet that demand.

What was the demand for small computers before venture capitalists using new money from Reagan's deregulation and tax cuts provided capital for companies like Apple, Microsoft, etc.? There was none, but the "windfall's from Reagan policies allowed investors to take risks on new investments that eventually drove the prosperity of the 1990's. No amount of middle class tax cuts intended to increase demand could have done this.

There was certainly demand for data processing, and more efficient means of consuming, storing, and sharing data back in the 80's. Personal computers were a vehicle to meet that demand. This is true independent of any regressive tax cuts.

Put another way, personal computers - much less regressive tax cuts - didn't invent the demand for data processing any more than the automobile invented the demand for transportation. You're mistaking technological innovation of an already existing, demanded process with the creation of an entirely new, not-previously-demanded process.

If you want to give the Reagan tax cuts credit for something that they actually created, look no further than our national debt. The trend of ballooning deficit spending and national debt begins in the 80s with Reagan's tax cuts. One could also make the argument that those tax cuts play a role in the skewed distribution of wealth and income that has taken hold over the last several decades as well.

There was no demand for personal computers because hardly anyone knew abou them and major companies like IBM and Polaroid who could have produced them didn't because they understood there was no demand for them. Companies like Apple and Microsoft were producing hardware and software for a small market for tech enthusiasts until financing from venture capitalists eager to invest the money they had made from the deregulation of financial institutions and the break up of stagnant corporations allowed these start ups to produce products that finally did gain the notice of both businesses and individuals. Because of this new source of financing these start ups were able to create products that then created their own demand and that is what fueled the economy of the 1990's. Without the bustling economy Reagan created with tax cuts and deregulation, the financing simply wouldn't have been there to launch these new companies.

You have an uncanny ability of missing the point, even though I clearly spelled it out for you. What do personal computers do? They allow us to store, share, process, and consume data. That said, people have been storing, sharing, processing, and consuming data well before the personal computer. And there has always been a demand for more efficient means of storing, sharing, processing, and consuming data. The personal computer met that demand.

Just as there was demand for more efficient means of transportation before the automobile came along, there was also demand for more efficient means of data processing before the PC came along. This is the point, and it is also the fallacy in your line of reasoning.

Whether or not Reagan ever cut taxes is of no consequence to the birth of the personal computer. The personal computer would have came about regardless because it was a tool that met the demand of more efficient means of data processing. One more time: the demand for efficient means of processing predates the birth of the personal computer.

 

[Redfish]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

 

[xotoxi]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

Why would a company expand if the demand for their products have not increased?

 

[Remodeling Maidiac]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

The point of ANY company is to maximize profits. Expanding is the first step in broadening your market share.

 

[Remodeling Maidiac]

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

Why would a company expand if the demand for their products have not increased?

You seem a bit slow.

Tax cuts WILL NOT LEAD TO LOWER PRICES.

They WILL lead to reinvestment

 

[Care4all]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

(I have trust in neither the government nor corporations, although I am a 1/300,000,000th shareholder in the government)

they could make the plan as one big fat stimulus by giving it all to those making $0 to 200k and then these people will spend every dime of the stimulus in the market... which then would increase demand and increase jobs to fill that demand?

 

[Redfish]

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

Why would a company expand if the demand for their products have not increased?

to get a larger market share or to bring new products to the marketplace. Your questions indicate that you may have slept through 9th grade economics.

 

[Redfish]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

(I have trust in neither the government nor corporations, although I am a 1/300,000,000th shareholder in the government)

they could make the plan as one big fat stimulus by giving it all to those making $0 to 200k and then these people will spend every dime of the stimulus in the market... which then would increase demand and increase jobs to fill that demand?

so your plan is to make income taxes 0 if you make less than 200K? Do you have any calculations to show how the government would stay in business if we did that?

 

[xotoxi]

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

Why would a company expand if the demand for their products have not increased?

You seem a bit slow.

Tax cuts WILL NOT LEAD TO LOWER PRICES.

They WILL lead to reinvestment

No need to be rude. I'm just trying to understand economics better, and I thank you for explaining it to me.

 

[xotoxi]

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

Tax rate is the topic here not supply & demand.
When more people are hired as a result of a lower tax rate more people have disposable income which is spent.

What makes a company hire more employees just because they don't have to spend as much on taxes?

with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.

Why would a company expand if the demand for their products have not increased?

to get a larger market share or to bring new products to the marketplace. Your questions indicate that you may have slept through 9th grade economics.

I never took economics. Too busy with math and science.

 

[Remodeling Maidiac]

https://www.nytimes.com/2017/04/24/us/politics/trump-corporate-tax-rate-15-percent.html?_r=0

This plan sounds great!

With all the money saved by corporations, think of how many new jobs they will create!!! Plus the price of EVERYTHING will go down!!!

This is a WIN for the AMERICAN PEOPLE!!

Any thoughts?

Prices won't go down but investment & hiring will likely result.

If prices don't go down, demand for products will not go up.

If for demand for products does not go up, why would companies increase hiring?

(I have trust in neither the government nor corporations, although I am a 1/300,000,000th shareholder in the government)

they could make the plan as one big fat stimulus by giving it all to those making $0 to 200k and then these people will spend every dime of the stimulus in the market... which then would increase demand and increase jobs to fill that demand?

so your plan is to make income taxes 0 if you make less than 200K? Do you have any calculations to show how the government would stay in business if we did that?

I think she was talking about a one time stimulas?
A waste of money that only offers the illusion of a temporary bump in economic growth.

 

[Care4all]

if wages are stagnant, how can the economy grow without having more money thru higher wages, to spend on goods?