U.S. corporate tax rate discourages job creation

[Darwin333]

Labor costs are usually a business' #1 expense. Labor costs are much, much lower in other countries than they are in the US.

Regardless of what you think the cost is, here is the data. (and if anything corporate tax rates are lower now than in 2002)
http://www.cbo.gov/ftpdocs/69xx/doc6902/11-28-CorporateTax.pdf

As you can see, the US is around 30% lower than the weighted average and lower than nearly every country on the list. Corporate taxes are not our problem.

I agree. Corporate taxes are not causing small/mid businesses to not hire, expand or grow. Income taxes are another story completely but thats for another topic. I am not sure about the Goldmans of the world but it seams to me they have gotten plenty of help from Uncle Sam lately and are pulling in record profits so it obviously can't be that big of a problem.

 

[nobodyknows]

Oh God not this strawman again

You're not the brightest bulb in the room yourself, now are you?

Yes, we need to give these businesses more tax breaks so they can hand out more 400 million dollar retiement packages, 70 million dollar salaries and multi-million dollar bonuses.

Strawman my ass.

 

[Robor]

He said taxes not expenses.

The taxes we are talking about are a very very small part of my expenses. My largest cost by FAR is labor. When you add up burden/insurance, benefits, and the actual labor costs it easily costs me well over $2 for every $1 I pay a man.

You know what I get for $2 in labor? Not a damn thing.

You know what you get in China for $2? A days work.

Then you have the complete lack of regulation in China versus our regulation here that adds significant costs. Hell, you could drop every tax we have and you still can't compete with the labor in China.

Well put!!!

 

[ElFenix]

i support dropping corporate taxes to make tax burdens on actual people more transparent.

 

[umbrella39]

I guess we should stop the obscene pay, bonus, and $400 million retirement packages then.

Shut your dirty mouth. The business first, fuck everyone else, maybe one day I'll grow up and be a rich white man, crowd here won't like that devil talk

 

[jonks]

Well Bush had 2 terms to try out his corporate tax cut plan including some sweeping legislation in '04. ( http://www.washingtonpost.com/ac2/wp-dyn/A54128-2004Oct22?language=printer ) How'd that word out for him? Let's ask that bastion of liberalism, the Wall Street Journal:

http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/

 

[piasabird]

Is there a middle class left in America? I thougt everyone was layed off? With no jobs there will be no new taxes paid. Cant fix stupid! They cant find a person qulified and stupid eough to take Mr Lewis's job as CEO at Bank of America. No one that smart wants to be the Federal Govt's whipping boy!

 

[JohnOfSheffield]

I'm fine with lowering corporate taxes, if the income taxes are raised to make it revenue neutral. A lot of European countries have lower corporate taxes but much higher personal income taxes. Be careful what you wish for. The UK, Portugal, Norway, Netherlands, Denmark, Turkey, Poland, Italy, Austria, Sweden, Germany- all have significantly higher income taxes.
They also have universal health care, removing a large burden from their corporations.
http://en.wikipedia.org/wiki/File:Income_Taxes_By_Country.svg

Yeah, but you STILL pay more taxes (per capita) for your healthcare that doesn't cover everyone so that's not why we have higher income tax.

Most of our income taxation is actually used to support infrastructure, you are where we were in the 50's when it comes to that.

 

[heyheybooboo]

Well Bush had 2 terms to try out his corporate tax cut plan including some sweeping legislation in '04. ( http://www.washingtonpost.com/ac2/wp-dyn/A54128-2004Oct22?language=printer ) How'd that word out for him? Let's ask that bastion of liberalism, the Wall Street Journal:

http://blogs.wsj.com/economics/2009/01/09/bush-on-jobs-the-worst-track-record-on-record/

Dammit, Jonks.

Stop it with those pesky facts!


-

 

[sandorski]

Dammit, Jonks.

Stop it with those pesky facts!


-

Damn, even the Republican whipping boy, Carter, did much better than Bush(both of 'em) and compares favorable against the Hero Reagan.

 

[CaptainGoodnight]

Dammit, Jonks.

Stop it with those pesky facts!


-

I wonder how many of those "jobs" were really created. No administration has lied about job creation numbers.

 

[werepossum]

He said taxes not expenses.

The taxes we are talking about are a very very small part of my expenses. My largest cost by FAR is labor. When you add up burden/insurance, benefits, and the actual labor costs it easily costs me well over $2 for every $1 I pay a man.

You know what I get for $2 in labor? Not a damn thing.

You know what you get in China for $2? A days work.

Then you have the complete lack of regulation in China versus our regulation here that adds significant costs. Hell, you could drop every tax we have and you still can't compete with the labor in China.

That is so true, which is why big business is backing the Dems so strongly. Getting single-payer government health care would help big business's competitiveness much, much more than lowering the corporate tax rate if it's done with taxes on the individual rather than on the employer. Same thing with worker's comp, although that'll never happen.

The OP's point is still valid though. When Chrysler and Daimler-Benz merged, they became a German company rather than an American company strictly because of taxes, saving over $400 million a year. This point is true no matter where the manufacturing or service (e.g. tech support) takes place.