Lowering Corporate Tax rate - A controversial way to create 10 million jobs

[dmcowen674]

6-18-2014

http://finance.yahoo.com/blogs/dail...-way-to-create-10-million-jobs-205032050.html

A controversial way to create 10 million jobs



Here are two problems with the U.S. economy that reinforce each other: Employers aren’t creating enough jobs, and big companies increasingly seek tax advantages by relocating overseas.


Republicans and Democrats agree in principle on the need to lower corporate tax rates and simplify the tax code


Those jobs, in theory, would materialize as corporations built new facilities at home instead of setting up shop in foreign countries, and as they “reshored” facilities that are already overseas.

 

[dmcowen674]

Just another form of trickle down and we all know nothing trickles down but shit.

 

[IndyColtsFan]

Any reduction in corporate taxes need to be directly tied to the number of new employees hired domestically IMO.

 

[xBiffx]

Any reduction in corporate taxes need to be directly tied to the number of new employees hired domestically IMO.

Somewhat agree. I don't think it should necessarily be tied right to number of employee. I think that corporations should not reaping larger profits just because of this. If they want to hire new employees to accomplish this, fine. But I would also be okay with investing in new improvements, research and development, updating equipment/buildings, etc.

 

[Engineer]

Any reduction in corporate taxes need to be directly tied to the number of new employees hired domestically IMO.

Sounds great to me....but the devil is in the details.

Of course, we could just cut the corporate rate to zero, declare the corporations, who no longer pay taxes, are no longer 'people' and then see if the 'job creators' actually follow through now that the taxes are gone. I'm sure that they will come up with lots of excuses and the deficit will widen, as it has with most tax cuts lately.

:hmm:

 

[Genx87]

Tax rates on corporations are imo just a waste of time. Most corporations will pass along that tax to their consumers. So who really pays for the tax? Further, bringing profits back state side shouldnt be taxed. Corporations based in this country have billions in profits sitting offshore because nobody(human or corporate) is dumb enough to have it taxed twice.

 

[KB]

I highly doubt cutting the corporate tax rate will create jobs. Companies don't spend additional profits on new employees, they tend to save it in bad times, give it to shareholders in good times or use it to buy other companies in growth times. Lowering the rate won't help jobs, but instead it may keep some companies from moving their headquarters elsewhere which would definately hurt jobs.

If they move their headquarters outside the US, we get $0 in taxes, but if they stick around, the US may get less than now, but more than $0. Although it will likely cut the amount the government takes in, it seems necessary to stem the tide of fleeing companies.

 

[IndyColtsFan]

Sounds great to me....but the devil is in the details.

That's right, and I'll let people who are paid to do that work do it.

 

[Cozarkian]

An idea for consideration, what about a tax benefit tailored to specifically encourage employment? So for example, allow wages paid to non-exempt employees to be deducted as a business expense up to 120% of the actual expense.

 

[Engineer]

That's right, and I'll let people who are paid to do that work do it.

LOL. There will be a zero tax rate and it will take 10,000 pages to implement it! :biggrin:

 

[dmcowen674]

I highly doubt cutting the corporate tax rate will create jobs. Companies don't spend additional profits on new employees, they tend to save it in bad times, give it to shareholders in good times or use it to buy other companies in growth times. Lowering the rate won't help jobs, but instead it may keep some companies from moving their headquarters elsewhere which would definately hurt jobs.

If they move their headquarters outside the US, we get $0 in taxes, but if they stick around, the US may get less than now, but more than $0. Although it will likely cut the amount the government takes in, it seems necessary to stem the tide of fleeing companies.

I think at this point it is too late.

There should be no Companies based in the U.S. at all.

They are people remember?

We will be better off without them.

 

[shabby]

Employers aren’t creating enough jobs,

That's because there isn't any demand for its product or people don't have money to spend. How do you solve this, tax cuts for corporations of course!

 

[Engineer]

That's because there isn't any demand for its product or people don't have money to spend. How do you solve this, tax cuts for corporations of course!

That way, they can add to their over 2,000,000,000,000+ dollar balance sheets. :thumbsup:

 

[lamedude]

I wouldn't be against the idea of getting rid of taxes on $ made outside the country since we're the only other country that does that. It would stop those dual citizen Canadians find out they owe the IRS stories.

 

[Zebo]

They already dont pay taxes hiding most profits offshore. You'll never be able to compete with slave labor $1 a day china. Thats why we had tariffs first 220 years which are gone.

Non exportable jobs they race us to bottom wages with open borders.

Sorry plan wont work.

What will work is policies of old. tariffs and immigration quotas and even moratoriums FDR did depending on unemployment. But those are off the table by elitists who decide policy so middle class is fucked.

 

[Anarchist420]

i definitely support lowering the corporate tax rate, but not by some meaningless amount like romney proposed. 15% flat rate without removing any deductions makes sense.

but if they just plan to make it 24% or remove deductions, then they shouldnt even bother

 

[Jimzz]

I have no problem reducing Corp tax rates, just reduce the loopholes at a 2 to 1 ratio. For every 2 dollars a loophole closes cut the Corp tax by $1 amount on average.

Corp tax rates hurt small business more than large. Large corps just do the Irish twist and other loopholes to get around while small and medium business's don't have the resources and/or ability to take advantage of all the loopholes.

 

[sm625]

Fail reasoning. Fail US public education.

Corporate taxes have been falling for decades. It has and will continue to have no beneficial effect on job creation. Higher taxes create jobs, by removing incentive to return capital to shareholders. Shareholders will not want money returned to them in the form of dividends, if that income is taxed at a very high rate. That is how we were able to have a strong and rapidly growing economy 50 years ago compared to now. If the money isnt returned to the shareholder then it has to go somewhere else, which means more capital expenditures, more hiring, all that good stuff that makes GDP hit 5% consistently. But because we live in a country totally overrun by corporate propaganda, no one understands this dynamic. Yall just swallow the lies parroted by media and conservative think tanks controlled by the top 1% who are the only ones who really benefit from this low tax paradigm. Higher taxes discourages the taking of income, which actually lowers tax revenue in the long run. At the cost of the top 1%. If you really want to understand the real reasoning behind the decline of the US, look no further than right here: The battle for the minds of the people over the efficacy of tax rates. That battle has been won by the top 1%, and they are reaping the rewards. And just think, their think tanks and foundations only had to spend a couple hundred million to convince the vast majority of unthinking uneducated morons that this was actually a good idea. Trillions has been lost as a result.

 

[Anarchist420]

I have no problem reducing Corp tax rates, just reduce the loopholes at a 2 to 1 ratio. For every 2 dollars a loophole closes cut the Corp tax by $1 amount on average. Corp tax rates hurt small business more than large. Large corps just do the Irish twist and other loopholes to get around while small and medium business's don't have the resources and/or ability to take advantage of all the loopholes.

good point... i dont think small or medium size businesses should be taxed. it takes time for them to file and all that shit and their rate is pretty high.

only businesses with > 500 employees over a certain amount of time and only those with more than $2.5bn in revenue over a certain amount of time should hav any of their profits taxed (and not at more than 15%). but they should not be taxed on money made overseas.

 

[realibrad]

Fail reasoning. Fail US public education.

Corporate taxes have been falling for decades. It has and will continue to have no beneficial effect on job creation. Higher taxes create jobs, by removing incentive to return capital to shareholders. Shareholders will not want money returned to them in the form of dividends, if that income is taxed at a very high rate. That is how we were able to have a strong and rapidly growing economy 50 years ago compared to now. If the money isnt returned to the shareholder then it has to go somewhere else, which means more capital expenditures, more hiring, all that good stuff that makes GDP hit 5% consistently. But because we live in a country totally overrun by corporate propaganda, no one understands this dynamic. Yall just swallow the lies parroted by media and conservative think tanks controlled by the top 1% who are the only ones who really benefit from this low tax paradigm. Higher taxes discourages the taking of income, which actually lowers tax revenue in the long run. At the cost of the top 1%. If you really want to understand the real reasoning behind the decline of the US, look no further than right here: The battle for the minds of the people over the efficacy of tax rates. That battle has been won by the top 1%, and they are reaping the rewards. And just think, their think tanks and foundations only had to spend a couple hundred million to convince the vast majority of unthinking uneducated morons that this was actually a good idea. Trillions has been lost as a result.

Holy crap. It amazes me that people can think the way you do.

"Higher taxes create jobs, by removing incentive to return capital to shareholders."

So, because share holders are not getting 100% of what they could have gotten, they just throw their hands up and say "screw this, we don't want anything, give it to the employees". How can that logic hold its self in your head, and not cause your mind to explode is amazing. Why would the share holders just take the income they can get, even if its lower? Why would the share holders decide to give it to the employees instead of paying themselves?

 

[Exterous]

Here are two problems with the U.S. economy that reinforce each other: Employers aren’t creating enough jobs, and big companies increasingly seek tax advantages by relocating overseas.

With the added complication that the tax code unfairly effects smaller companies who are not big enough to take advantage of the tax loopholes.

 

[Thebobo]

More money in the hand of the consumers is more purchase power equals more jobs created to support the demands.

We are the Job Creators not the weathly

 

[realibrad]

More money in the hand of the consumers is more purchase power equals more jobs created to support the demands.

We are the Job Creators not the weathly

You tried that argument once, and gave up. You cannot say that consumers are job creators, and employers are not. Do you want to do this dance again?