Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes

[Gunslinger08]

But won't increased personal taxes just be passed on to corporations in the form of reduced consumer spending?

Regardless of what you do, the government is going to take its share and individuals are going to foot the bill. The only real decision is how much control you think they should have over who pays it.

 

[her209]

Decreased (effective) corporate tax rates give businesses more money to hire more employees, who can then pay personal income taxes.

Businesses hire and pay employees with pre-tax dollars, i.e., decreasing their tax rate means their just not paying as much to the government out of their profits.

 

[alkemyst]

until the US ropes their companies in to dealing locally, this is accepted.

 

[swerus]

Why not have 100% taxes then? It's all passed on according to you so it should be no problem for business.

Its a proven fact, its not according to me. Taxes are passed down to consumers. Our entire economy is consumer based.

What is considered "consumption"?

Sales tax

But won't increased personal taxes just be passed on to corporations in the form of reduced consumer spending?

Yes increase taxes hurt everyone except big government, and recipients of welfare, subsidies and the like. Take from one and give to another, the only one it gains is someone who receives money or benefits for just being alive.

 

[BrunoPuntzJones]

lol, tell me about it. LIFO reserves, LIFO layers, impairments, it all drives me f'ing crazy. But it was fascinating to see how managers can manipulate earnings through accounting. If I believed my cost acctg prof, all earnings & COGS are useless.

In a few years LIFO will be done away with for the most part under IFRS

 

[ohnoes]

In a few years LIFO will be done away with for the most part under IFRS

I was under the impression IFRS currently doesn't allow LIFO and its only US that allows LIFO. Which is why I had to go through the pain of adjusting for LIFO reserves when comparing U.S. vs. EU fin statements.

 

[BrunoPuntzJones]

I was under the impression IFRS currently doesn't allow LIFO and its only US that allows LIFO. Which is why I had to go through the pain of adjusting for LIFO reserves when comparing U.S. vs. EU fin statements.

Correct, and the US is moving towards IFRS gradually. Convergence, woooo.

 

[mwtgg]

Correct, and the US is moving towards IFRS gradually. Convergence, woooo.

Therein lies the problem. IRC Section 472(c) states that the method used for valuing inventories for financials must be the same used for tax purposes. Unless this is corrected, the necessary LIFO adjustments would create massive "profits" (and massive tax bills) for many companies. Just imagine the outrage...