Seriously, what's wrong with reducing the corporate tax rate to 15% (or less)?

[Anarchist420]

I think Obamney refuses to significantly reduce the rate because they're so irrational in that they'd rather think they're punishing the corporations than try to be competitive in the global arena.

The thing that makes Obama look stupid is the fact that he loves spending money on the wealthy as well as taxing them more at the same time. What a fucking dolt.

If the government is to keep the corporate tax, then what they ought to do is just have a flat marginal rate of 15% (only on taxable profits, rather than revenue) for all businesses (large and small) and a $250k exemption. That would be a tax reduction for all businesses. Then there should be no credits for anything and no deductions for employee health care (however, all other deductions should remain). Instead, everyone should be allowed to deduct all of their health care expenses.

They shouldn't keep the corporate tax in the first place, but if they have to then they shouldn't use it to screw everyone over as much as they possibly can.

 

[Londo_Jowo]

Why are you worried about Obama or Romney? I thought Dr Paul was going to be the next President.

 

[nehalem256]

It might have something to do with the Trillion dollar deficits.

As well as the fact that then they would have to eliminate all of the deductions/credits whatnot. So how would they reward the industries that donate money to politicians?

 

[nehalem256]

They shouldn't keep the corporate tax in the first place, but if they have to then they shouldn't use it to screw everyone over as much as they possibly can.

And so how much more are you willing to personally pay to cut taxes on corporations?

Or do you think that they will cut prices or increase your salary when they pay lower taxes?

 

[jstern01]

Three reasons.

1. If the rate is lowered to 15%, then loop holes that allow corporations to skirt paying taxes at lower rates (GE, Apple, FedEx) would need to be closed. This would result in the fortune 100 paying higher taxes.

2. As a percentage of the Federal revenue, corporate tax collections are at historically lows compared to say even 15 years ago. Which means that lowering them would effectivel remove corporate taxes as source of funding for the federal government despite deriving major benefits from government (like infrastructure, security, trade protections).

3. Finally, if corporations were paying the "statutory" rate of 35%, not the effective rate around 25% (and lower for the fortune 100), and if it would repatriate jobs to the US, which there is no proof it would, then we should look at lowering possibly adjusting them.

 

[Anarchist420]

If the rate is lowered to 15%, then loop holes that allow corporations to skirt paying taxes at lower rates (GE, Apple, FedEx) would need to be closed. This would result in the fortune 100 paying higher taxes.

Actually, they pay lower taxes to the American government, but they pay a ton of taxes to foreign governments. The deductions (except for employee health care) should stay, but negative taxes should be ended. The government would save money and could add more deductions for individuals by eliminating negative taxes for corporations and by saving money from jobs being repatriated back to America.

And so how much more are you willing to personally pay to cut taxes on corporations?

No one would have to pay anything for it.

I should add that people who own their own business can pay close to 50% in Federal taxes. Peter Schiff does. The government shouldn't exist, let alone take 50% of anyone's income.

 

[Kntx]

Corporations should not be taxed. Remove the corporate income tax. Adjust personal income tax so that capital gains and dividends are taxed as regular income.

 

[Anarchist420]

Corporations should not be taxed. Remove the corporate income tax. Adjust personal income tax so that capital gains and dividends are taxed as regular income.

That's not the worst idea, but a few people wouldn't even get a full 15 percentage point tax cut. Peter Schiff is paying close to 50% of his income in Federal taxes.

 

[cybrsage]

Corps should be taxed at the union tax rate.

 

[crownjules]

The only reason would be if at the same time many of the loopholes are closed, in effect simplifying the tax code. Hopefully this would mean the IRS could get rid of a number of employees and effect a reduction in government spending. And it would be even better if it was part of a broader reform to simply the entire tax system, not just for corporations.

It should not be done because of the perception that corporations have to pay more taxes in the US then anywhere else. Due to those aforementioned loopholes, we're a fairly competitive country as it stands.

 

[IBMer]

Getting rid of Corporate tax should also be followed with a lot of changes to incorporations and their limited liability. There is a reason Corporations are "double" taxed.

 

[werepossum]

I'd love to see the corporate tax abolished, along with taxing dividends and stock profits just like wage income, adopting very strict rules on what are legitimate expenses versus payment in kind, streamlining regulatory red tape, cracking down on illegal immigration, and establishing import tariffs and duties to reward domestic production regardless of the company's nationality. If we merely reduce or abolish the corporate tax rate without addressing other issues driving production off shore, we run the risk of making things worse in the long run since corporations would also return greater dividends and/or stock value growth on profits earned offshore. We might well increase the value of resource owners' holdings without increasing the value of our labor, giving us a more prosperous society but one which would have even more wealth stratification. Simply reducing or abolishing corporate taxes wouldn't even guarantee a more prosperous society, because over the last half century our corporations have become increasingly foreign-owned. We might on balance just increase the ease at which wealth flows out of our economy.

It's worth doing, but in my opinion only with accompanying steps to protect and increase the value of American labor. Otherwise the problems brought on by increased wealth stratification might well be worse than the benefits.

 

[BoberFett]

I don't think you want to encourage companies to hoard capital and build massive warchests.

 

[piasabird]

15% is more than most people pay in taxes on their income.

50% of people are not even paying taxes.

Lets tell the truth here.

I took my taxes paid and divided by my gross pay and I am paying less then 5%!

What exactly is wrong with saving money? Are you a communist?

 

[Jhhnn]

I don't think you want to encourage companies to hoard capital and build massive warchests.

Funny you'd say that, because they already are, both abroad & at home.

http://online.wsj.com/article/SB10001424053111903927204576574720017009568.html

 

[Jhhnn]

15% is more than most people pay in taxes on their income.

50% of people are not even paying taxes.

Lets tell the truth here.

I took my taxes paid and divided by my gross pay and I am paying less then 5%!

What exactly is wrong with saving money? Are you a communist?

That old saw about 50% not paying (federal income) taxes is dishonest, yet one of the usual arguments righties employ. What matters is total taxation, no matter which govt entity receives the revenue. By that measure, things certainly aren't as you claim them to be. Not that you or the usual cohort really seem to understand that, because you'll be making the same deceptive & dishonest assertion tomorrow, next week, next year. It's what you need to believe to maintain a defective world view-

http://www.ctj.org/pdf/taxday2011.pdf

 

[BoberFett]

Funny you'd say that, because they already are, both abroad & at home.

http://online.wsj.com/article/SB10001424053111903927204576574720017009568.html

Part of the problem is that something as complex as our tax system is extremely difficult to fix piecemeal. You need a comprehensive plan enacted at the same time designed with harmonization of all its myrid pieces in mind. Changing just the corporate tax rates would have likely disastrous unintended affects, as would changing only the cap gains rate by itself.

Of course another part of the problem is that the tax code is not used simply as a way to generate revenue for the government, but also as a social policy hammer to get people to fall in line with whatever some special interest decides is "morally correct" behavior.

 

[Anarchist420]

Part of the problem is that something as complex as our tax system is extremely difficult to fix piecemeal.

Agreed. I think that's why Dr. Paul said "...by the way, when I say abolish the income tax, I don't just mean fiddle with the code. I mean abolish it and replace it with nothing."

All centralized taxes can be made complicated, even tariffs can be made complicated so that's why I've always said a confederal tax system is the least harmful. However, it will need to be over well more than 50 jurisdictions.

One of the reasons why I've always been against the FairTax is because it's too prone to be taken over by special interests. For example, buying company X's product instead of a comparable product from Company Y may get people a rebate under the FairTax, which would distort the market just as much as the income tax.

 

[nehalem256]

That old saw about 50% not paying (federal income) taxes is dishonest, yet one of the usual arguments righties employ. What matters is total taxation, no matter which govt entity receives the revenue. By that measure, things certainly aren't as you claim them to be. Not that you or the usual cohort really seem to understand that, because you'll be making the same deceptive & dishonest assertion tomorrow, next week, next year. It's what you need to believe to maintain a defective world view-

http://www.ctj.org/pdf/taxday2011.pdf

And the calculation you show is not any more biased?

All Americans pay taxes.
Everyone who works pays
federal payroll taxes.

Federal payroll taxes are basically a forced retirement/retirement-healthcare plan. Are you suggesting poor people shouldnt have to pay for their retirement?

state and local property taxes
affect everyone who owns or
rents a home (the tax is passed on to renters in the form of higher rents)

Isnt this exactly the same as the argument that corporations dont pay tax. The people the purchase goods from them do?

 

[ElFenix]

hold out for 0%

 

[cybrsage]

That old saw about 50% not paying (federal income) taxes is dishonest, yet one of the usual arguments righties employ.

In 2004, the correct number was 38%. In 2010, the correct number was 45%. Rounding it to 50% is not correct, but I can understand why it is done. It would be better to simply say "roughly half" do not pay federal income taxes.

http://money.cnn.com/2011/04/14/pf/taxes/who_pays_income_taxes/index.htm

 

[ElFenix]

In 2004, the correct number was 38%. In 2010, the correct number was 45%. Rounding it to 50% is not correct, but I can understand why it is done. It would be better to simply say "roughly half" do not pay federal income taxes.

http://money.cnn.com/2011/04/14/pf/taxes/who_pays_income_taxes/index.htm

i find it interesting that the republicans pushed through a bunch of the EITC expansions and child tax credits that have caused this lack of income tax paying, and are now bitching about it.

 

[nehalem256]

i find it interesting that the republicans pushed through a bunch of the EITC expansions and child tax credits that have caused this lack of income tax paying, and are now bitching about it.

If both Democrats and Republicans were not allowed to complain about the consequences of their own programs what would they talk about?

But maybe they just started buying into the rhetoric that republicans only cut taxes for the wealthy?

 

[Zebo]

There should not even be Corporate taxes. Puts our companies at huge disadvantage in world stage, destroys start ups due to complexity and cost and puts smaller companies at a huge disadvantage to larger ones staffed with tax accountants and tax lawyers who can pay little relatively.

Tax people not entities that pay people.

 

[senseamp]

Since SCOTUS ruled corporations are people, they should pay at same rates as people, including on foreign income.