Remodeling Maidiac
Diamond Member
- Banned
- #41
Prices won't go down but investment & hiring will likely result.
Plan to Cut Corporate Tax Rate to 15%
- Thread starter xotoxi
- Start date
NightFox
Wildling
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.
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).
- Thread starter
- #43
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)
Last edited:
toomuchtime_
Gold Member
- Dec 29, 2008
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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.
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.
da Vinci
Rookie
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
Diamond Member
- Banned
- #46
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.
- Thread starter
- #47
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?
- Thread starter
- #48
What makes a company hire more employees just because they don't have to spend as much on taxes?
da Vinci
Rookie
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.
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.
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
Diamond Member
with taxes eliminated companies would be able to expand, growing companies need more employees, its really not complicated.
- Thread starter
- #51
Why would a company expand if the demand for their products have not increased?
Remodeling Maidiac
Diamond Member
- Banned
- #52
The point of ANY company is to maximize profits. Expanding is the first step in broadening your market share.
Remodeling Maidiac
Diamond Member
- Banned
- #53
You seem a bit slow.
Tax cuts WILL NOT LEAD TO LOWER PRICES.
They WILL lead to reinvestment
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
Diamond Member
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
Diamond Member
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?
- Thread starter
- #57
No need to be rude. I'm just trying to understand economics better, and I thank you for explaining it to me.
- Thread starter
- #58
I never took economics. Too busy with math and science.
Remodeling Maidiac
Diamond Member
- Banned
- #59
I think she was talking about a one time stimulas?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?
A waste of money that only offers the illusion of a temporary bump in economic growth.
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