Tax corporations like people

[Sallow]

If corporations are Constitutionally the same as people, and the Supreme Court said they are, why shouldn't they pay income tax like we do? They used to and our economy boomed.

It wouldn't be that difficult to reverse the Reagan Revolution, which saw the majority of the tax burden shift from corporations to individuals...IF we first get rid of the corporate stoogies in Congress.

http://www.nytimes.com/2013/04/15/o...?nl=todaysheadlines&emc=edit_th_20130415&_r=0

 

[ScienceRocks]

Corperations aren't bad as they make stuff that we need at affordable prices. Do you really want to pay a lot more and have more poor people?

 

[editec]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

 

[BillyV]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

Hmmm....Let's see, projected 2013 deficit, $900 billion.

Removing the top limits to social security estimated to be worth about $1.2 trillion over ten years, so about $120 billion per year. Increases in capital gains taxes are easily avoidable by simply not selling assets subject to substantial gains, but let's be generous and say it's worth $50 billion. Increase corporate tax rates to match individual rates; thats about a 4.6% rate increase. If you applied that to about $1 trillion in taxable corporate income, that generates another $50 billion or so.

Sounds like you still have a $700 billion spending problem.

 

[Mac1958]

.

Capital flows towards the path of least resistance. Capital flows away from increased resistance.

Reduce corporate taxes to a 10% flat level (including a business version of "The Buffett Rule") and you would witness a flood of both international and domestic capital flowing into our system, the likes of which you've never seen.

But since corporations are "evil", we ain't gonna see that happen.

.

 

[editec]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

Hmmm....Let's see, projected 2013 deficit, $900 billion.

Removing the top limits to social security estimated to be worth about $1.2 trillion over ten years, so about $120 billion per year. Increases in capital gains taxes are easily avoidable by simply not selling assets subject to substantial gains, but let's be generous and say it's worth $50 billion. Increase corporate tax rates to match individual rates; thats about a 4.6% rate increase. If you applied that to about $1 trillion in taxable corporate income, that generates another $50 billion or so.

Sounds like you still have a $700 billion spending problem.

If you say so, as it regards Social Security, Billy. I haven't done the math. But I would like to see yours.

As to capital gains?

Well yes I do not doubt a change in capital gains law will effect buying and selling behavior somewhat. I am rather dubious you or I (or anyone really) can predict how much though.

Increase corporate tax rates to match individual rates; that's about a 4.6% rate increase.

Where'd you get that 4.6% number?

If we treated cap gains exactly like all other income the rates would depend on the gains AND on the totals for all other income, too.

What's the top rate for labor income? 39.4%, isn't it?

The top rate on capital gains is 20%.

That's surely more than a 4.6% difference.

 

[Redfish]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

1. agree, SS tax should be collected on all income

2. capital gains should not be taxed at all

3. corporate tax rate should be zero, then you would see an economic boom like never before in this country

4. the national debt problem will not be solved until the govt stops spending more than it collects.

 

[Staidhup]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

1. agree, SS tax should be collected on all income

2. capital gains should not be taxed at all

3. corporate tax rate should be zero, then you would see an economic boom like never before in this country

4. the national debt problem will not be solved until the govt stops spending more than it collects.

Sometimes common sense and simplicity are trumped by stupidity. For one to think that every problem can be remedied with a new law, government spending, and increased taxation is proving that their understanding of the complexity of the issue and human nature is not be fully appreciated and understood.

 

[Crackerjaxon]

If you don't like corporations, don't work for them or buy their products. They'll go away.

 

[editec]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

1. agree, SS tax should be collected on all income

2. capital gains should not be taxed at all

3. corporate tax rate should be zero, then you would see an economic boom like never before in this country

4. the national debt problem will not be solved until the govt stops spending more than it collects.

Sometimes common sense and simplicity are trumped by stupidity. For one to think that every problem can be remedied with a new law, government spending, and increased taxation is proving that their understanding of the complexity of the issue and human nature is not be fully appreciated and understood.

Well given that the deficit was the end product of a changes in the laws that reduced taxation, amigo, perhaps common sense and simplicity will triumph despite stupidity.

 

[LoneLaugher]

Has anyone looked at the average CEO compensation in relation to the average worker?

Should we do something about that?

How about taxing CEO compensation up to 50 times that of the median income at current rates while making them pay SS taxes on all income up to that point. Beyond 50 times, income is taxed at 90%,

This will get CEO's to WANT the median income to rise.........cool huh?

 

[BillyV]

Three things ought to be done

1. Remove the top income limits to social security

2. Rethink the tax laws regarding capital gains.

3. Increase corporate taxes such that they match the tax rates on individuals.

Voila the national debt problem is solved!

Hmmm....Let's see, projected 2013 deficit, $900 billion.

Removing the top limits to social security estimated to be worth about $1.2 trillion over ten years, so about $120 billion per year. Increases in capital gains taxes are easily avoidable by simply not selling assets subject to substantial gains, but let's be generous and say it's worth $50 billion. Increase corporate tax rates to match individual rates; thats about a 4.6% rate increase. If you applied that to about $1 trillion in taxable corporate income, that generates another $50 billion or so.

Sounds like you still have a $700 billion spending problem.

If you say so, as it regards Social Security, Billy. I haven't done the math. But I would like to see yours.

As to capital gains?

Well yes I do not doubt a change in capital gains law will effect buying and selling behavior somewhat. I am rather dubious you or I (or anyone really) can predict how much though.

Increase corporate tax rates to match individual rates; that's about a 4.6% rate increase.

Where'd you get that 4.6% number?

If we treated cap gains exactly like all other income the rates would depend on the gains AND on the totals for all other income, too.

What's the top rate for labor income? 39.4%, isn't it?

The top rate on capital gains is 20%.

That's surely more than a 4.6% difference.

With regards to Social Security; I didn't notice I was using figures from a 2001 analysis. Here is a more recent analysis - add about $20 billion per year.

As for capital gains, the most recent information I can find from the IRS indicates about $500 billion in long term gains in 2010. That's at a 15% rate, and you can assume that at least some of that would not be taxed at the highest marginal rate if you taxed it the same as ordinary income. If you assume 80% is taxed at the top rate you would get to about $80 billion (for the extra 20% of $400 billion). However, it seems likely that at least some of those sales would not occur because of the economics of paying 40% capital gains. I think $50 billion is a pretty good estimate.

The corporate tax rate on ordinary income is 35%; the top tax rate for individuals is now 39.6%, hence the 4.6%. Capital gains are already added above; you aren't going to add it twice, right?

I think the point I'm trying to make is, we can't tax our way out of this situation; we need to make some common sense, gradual changes to spending or we will never get the deficit under control. Alternatively, we could create 5-7% growth for 8-10 years; if anyone knows the recipe for that, I think there's a phone at the White House.