Reduce corporate taxes

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Kudos on the Aug. 3 editorial “The real tax problem.”

The president’s criticism of corporations that relocate out of the country, seeking relief from our unacceptably high level of corporate tax, and his calling of such action “unpatriotic,” is a display of economic ignorance. His comment can be viewed as ignorance either of corporate tax structure in other nations, or part of the policy to tax successful business ventures. This socialist agenda – detrimental to the success of a nation that became a world power through capitalism – must be seen for what it is.

A reduction in corporate tax is the answer. We need look no further than the low unemployment in, and gravitation of industry to, the state of Texas. A novice in economics could provide causes and effects.

When the time comes to elect our representatives, consider their qualifications and past performances rather than their genders, religions or ethnic backgrounds. At present we have many who have forgotten the words of our Founding Fathers: “... Governments are instituted among Men, deriving their just Powers from the Consent of the Governed ... ”

John Mullen

Evans

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robaroo
877
Points
robaroo 08/07/14 - 05:59 am
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4
Balanced Budget Needed

The country is drowning in debt. Any tax cut needs to be offset by cutting spending or raising taxes somewhere else.

deestafford
31682
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deestafford 08/07/14 - 07:07 am
5
2
An excellent letter...

An excellent letter.

When America was the economic engine of the world we were at the bottom as corporate taxes are concerned . I would be willing to bet there is a direct relationship with the economic heath of a country and its corporate tax rate.

My first choice would be the FAIR TAX under which corporations would pay no taxes as corporate taxes are paid by the consumer in reality.

Not getting the FAIR TAX, my second choice would be to find the lowest corporate taxes in the world and then under cut them by a minimum of 1%.

Doing either of the above two will bring so many business to our shores a person would have to become a hermit in the swamp to avoid getting job offers.

RMSHEFF
18709
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RMSHEFF 08/07/14 - 07:09 am
6
0
robaroo

Did you not learn anything from the Reagan years. Cutting taxes increase revenue to the federal government. The ideal federal tax rate to generate the most revenue is about 18%. We now have the highest tax rate among competing countries and this is costing us both jobs and revenue. ALWAYS remember, corporations and businesses don't actually pay taxes, they collect taxes and pass them on to the government. These taxes are all included in the price of their goods or services. The problem is a big fat bloated government that always wants more and more money!

Bodhisattva
7125
Points
Bodhisattva 08/07/14 - 07:28 am
1
8
Texas?

One of the most regressive tax systems in the country, and one of the fastest declining per capita incomes.
A high population growth, mostly from a high in state birth rates (especially from teens creating a large low wage work force) causing a need in increased construction, increased trade with Mexico, and an increase in gas and oil production, the Texas Enterprise Fund, a slush fund that's a giveaway in tax breaks, subsidies, and incentives to certain businesses, causing small businesses to pay much higher tax rates than "favored" industries. Not exactly a business model that could or should, be followed by other states.

curly123053
5343
Points
curly123053 08/07/14 - 07:31 am
8
1
FairTax = No Corporate Taxes

The FairTax would erase all corporate and payroll taxes from the books resulting in a massive economic stimulus unlike anything we have seen. The government needs to stop punishing the job makers and give them good reasons for expanding and adding jobs.

Bodhisattva
7125
Points
Bodhisattva 08/07/14 - 07:42 am
1
8
The "Fair Tax" is a scam

The "Fair Tax" is a scam forcing everyone to pay a 30%+ tax rate on every dollar they spend on every new item and EVERY SERVICE. Rent, food, medicine, doctors visits, hospital bills, utilities, your house, a portion of your mortgage fee, credit card fees, you name it. Don't believe the bull about prices dropping or you get to keep your whole paycheck. Those are part of the scam. Even Boortz dropped the paycheck nonsense and most of the cost of products is labor, not taxes. It does allow the super wealthy to grow their riches tax free, which is what it's designed for, and only what it's designed for, which allows corporations to rake in money, pay no taxes, shareholders and executives to make more tax free money, and put even more burden on the Treasury, making the tax rate have to go above the 30%. Scam upon scam, upon scam.

Angela H
11591
Points
Angela H 08/07/14 - 08:23 am
7
1
Bod, explain why it's a scam,

Bod, explain why it's a scam, just because you say things in the plan are not true. The author says it IS true and you say it is not. Explain what makes your credibility better.

Angela H
11591
Points
Angela H 08/07/14 - 08:23 am
7
1
And what's wrong with

And what's wrong with EVERYONE paying their fair share?

RMSHEFF
18709
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RMSHEFF 08/07/14 - 09:05 am
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1
Angela

Bod thinks its a scam because it would take the power away from the god he worships..... the Federal government. I wonder if he like the fact that GE pays no federal taxes....I would like it if there were no taxes on job creators!

RMSHEFF
18709
Points
RMSHEFF 08/07/14 - 09:09 am
6
1
BOD

Why do you think so may companies are fleeing California and other states run by liberals? They are moving to Texas where most of the jobs are being created. According to your beliefs people should be flocking to these wonderful places where the tax rates and cost of living are so high!

jimmymac
47303
Points
jimmymac 08/07/14 - 09:18 am
1
0
TAXES
Unpublished

No state has ever taxed it's way to prosperity. I have to laugh when I hear elected officials say that higher taxes will make people want to live a certain place. The city Of Aiken right now is talking about raising taxes to stop a slowing rate of growth. That people are no longer flocking to Aiken in droves will suddenly stop if you increase the cost of living here. People move away from high tax areas when they retire so how is raising taxes going to encourage them to relocate?

Dixieman
17194
Points
Dixieman 08/07/14 - 09:29 am
7
1
Corporate tax rate

should go to zero. ALL corporate taxes are simply passed on to consumers, employees,and investors and thus the tax really falls on them (us). And there is no rationale for not taxing partnerships (even those publicly traded) and REITs (real estate investment trusts) but taxing identical corporations. FairTax is a much better answer.
Alas, this will never happen because tax lawyers, accountants, HR Block and the like depend too much on the present system for their daily bread. (I have done tax work professionally and promise you this is true).

John Mullen
11
Points
John Mullen 08/07/14 - 09:56 am
4
1
Fair Tax & success of Texas

Those who oppose the Fair Tax or comment against need to learn more about it rather than parrot the objections of political non believers.
Before we put down the success of Texas look into the number of corp. and financially successful individuals moving there. We also have one area of Texas that optd out of social security for their county employees in favor of retirement investments. Those employees are now retiring with a higher income than they were earning.

Little Lamb
48816
Points
Little Lamb 08/07/14 - 10:01 am
4
1
No Scam

Bodhisattva posted:

The "Fair Tax" is a scam forcing everyone to pay a 30%+ tax rate on every dollar they spend on every new item and every service.

It is no scam. It is better to pay 30% tax on what you buy as opposed to the current system whereby you are paying 15%, 20%, 40% or more on your income (earned income, interest income, dividend income, pension income, Social Security income, capital gains income, rental income, royalty income, etc., etc.).

The Fair Tax includes an exemption for a certain amount that covers what is considered to be essential living expenses (food, utilities, etc.).

The Fair Tax is definitely fairer.

burninater
9921
Points
burninater 08/07/14 - 10:15 am
1
4
.

.

burninater
9921
Points
burninater 08/07/14 - 10:32 am
2
4
"When America was the

"When America was the economic engine of the world we were at the bottom as corporate taxes are concerned ."
------
Dee, that simply isn't true -- unless you think we are the economic engine of the world now. I'm guessing you don't, as you are using the past tense.

The average corporate tax in 2011 was the lowest -- that's right, LOWEST since WORLD WAR ONE. It is true we have the highest nominal tax rate of the developed countries -- but our effective taxation, or what is actually paid after adjustments, is one of the lowest in the world.

Effective corporate tax rates have steadily DECLINED over US history, and of the OECD countries, the US is virtually tied with Turkey, Germany, and Iceland for the LOWEST corporate income tax per GDP in OECD countries globally.

http://en.m.wikipedia.org/wiki/Corporate_tax_in_the_United_States

justthefacts
24891
Points
justthefacts 08/07/14 - 10:41 am
5
0
Burn's link

As usual, Burn's info is correct. However, it should be noted that "lowest" amount was an average. We all know what average means..right? Super large corp, like GE paid 0. Smaller, so called Moms and Pops are ones above that average. And they are the ones we depend on for jobs.

nofanofobama
6993
Points
nofanofobama 08/07/14 - 10:43 am
3
0
problem with the tax code..is

problem with the tax code..is its size ..and complexity...no one understands it..the IRS is the arbritratory, has the first and last word, can fine you sieze your assets without due course..it is estimated that it cost over 250 billion dollars for taxpayers and business to comply with this collaso mess...one way or another its way to high to comply with and is choking off business activity...we now have more business closing than start ups...and you kool-aide drinkers who believe in a 4 percent GDP .will also believe that higher taxes for corporations are good and productive ......

burninater
9921
Points
burninater 08/07/14 - 11:01 am
2
5
"And they are the ones we

"And they are the ones we depend on for jobs."
------
There's an interesting phenomenon with this one.

Small businesses account for 99.7% of U.S. employment firms.

Wow, right?

But as far as actual employment, they account for just less than half -- 49.2% percent of private sector employment.

And as far as payroll, the share is even lower -- 42.9% of private sector payroll.

Their share of private-sector output is 46%, and that number may explain the decline of small business.

46% output, from 49.2% of employment, generating 42.9% of payroll. These numbers demonstrate that small businesses are on average simply less efficient, and generate less payroll, than medium to large firms.

http://www.sba.gov/sites/default/files/FAQ_Sept_2012.pdf

burninater
9921
Points
burninater 08/07/14 - 11:12 am
1
3
Jtf, your point about small

Jtf, your point about small firm vs large firm taxation is spot-on -- that SBA link I posted shows effective tax rates for small firms way above the national average.

This is a direct effect of considering corporate campaign contributions as protected speech: the largest firms, with the deepest pockets, are the ones that get to both influence, and often literally write, our corporate tax policy.

justthefacts
24891
Points
justthefacts 08/07/14 - 11:14 am
2
0
Small business

We still sort of need them. Plus, I am always suspicious of these types of percentages. More analysis behind them would be needed.

corgimom
38162
Points
corgimom 08/07/14 - 02:41 pm
0
2
There are so many corporate

There are so many corporate tax deductions, writeoffs, and tax credits, that many corporations pay little to nothing. That's courtesy of Congress, who writes the tax code to benefit their buddies.

Texas doesn't have corporation tax because they are so flush with revenue from natural gas and oil that they don't need it.

If corporations don't pay, that means that INDIVIDUALS must pay it. The money has to come from somewhere. Do you want to pay more taxes?

corgimom
38162
Points
corgimom 08/07/14 - 02:43 pm
1
2
If corporations were exempt

If corporations were exempt from paying taxes, all it would mean is that the CEO's, administrators, and stockholders would get more profit. It wouldn't change consumer prices one bit.

corgimom
38162
Points
corgimom 08/07/14 - 02:48 pm
0
1
RMSHEFF, corporations are

RMSHEFF, corporations are fleeing California for the following reasons:

1. The outrageously high cost of living, that they have to pay far more in salaries

2. The lack of dependable electricity and the increasing number of blackouts

3. The increasing scarcity and subsequent outrageous rates charged for water

4. The very strict environmental laws that are expensive to follow and are getting worse by the year

5. The congestion and the decline in the quality of life

6. The increasing difficulty of recruiting qualified employees, see #1, #2, #3, and #5

Corporate taxes are the least of their worries.

justthefacts
24891
Points
justthefacts 08/07/14 - 02:50 pm
1
0
Corgimom

You should put, "in my opinion" in front of that statement. Because you have no evidence of what would happen to consumer pricing. Do you?

corgimom
38162
Points
corgimom 08/07/14 - 02:52 pm
0
1
RMSHEFF, here's an example.

RMSHEFF, here's an example. My house in California was built in 1956, it's nearly 60 years old. 4 bedrooms, 1 3/4 bath, 1248 square feet, with ZERO insulation. Teeny tiny bathrooms, a very small living room. Small bedrooms. 58 year old plumbing and wiring. Slab foundation.

It's worth $450,000.

My father paid $15,000 for it in 1964.

Compare that to what a house of comparable size and age would sell for in Augusta.

Darby
29159
Points
Darby 08/07/14 - 03:06 pm
2
0
"Any tax cut needs to be offset by cutting

spending or raising taxes somewhere else."

.
A comment that obviously demonstrates a lack of knowledge in basic economics.

It might hold true to some minimal degree if one assumes that government spending and growth is highly efficient and that waste is non-existent.

Even then, it's a theory that works under a failed and disproven economic system such as the Keynesian model.

corgimom
38162
Points
corgimom 08/07/14 - 03:07 pm
0
2
Yes, I do. Because as I said,

Yes, I do. Because as I said, many corporations already pay little to no corporate tax as it is; so if the corporate tax was eliminated, nothing would change for them. So why would they lower prices? Why don't they lower prices now, since they don't pay corporate tax?

Because the money to pay those outrageous salaries and perks has to come from somewhere.

So no, that's not "just my opinion." Your scenario assumes that the elimination of corporate tax would mean an automatic lowering of prices, and that's just not true. Corporations exist to make the maximum amount of profit that they can. That's what their stockholders expect. It would make no sense to think that they would cut retail prices if they didn't have to. They charge the maximum the market will bear.

That concept would also violate the rule of accounting symmetry. If something is income to someone, then something has to be an expense for somebody else (the exception to that is dividends, which is paid out of retained earnings, and affects the capital section of the balance sheet of a corporation.)

That means if a corporation deducts an expense- like payroll expenses- the employees then pay tax on the money. Expense to the corporation, income to the employee.

So if that deduction was eliminated, that would leave individuals with income- and there wouldn't be any offsetting deduction.

And that means people like you and me would get stuck paying more taxes, because the money has to be paid by somebody. No corporate tax (which already happens too much), more individual tax (which also happens too much).

justthefacts
24891
Points
justthefacts 08/07/14 - 03:08 pm
1
0
Reasons for Leaving CA

According to the Manhatten Institute. Jobs first, then taxes.
http://www.manhattan-institute.org/html/cr_71.htm#.U-PaVKORKQI

justthefacts
24891
Points
justthefacts 08/07/14 - 03:14 pm
3
0
corgimom quotes

"Because as I said, many corporations already pay little to no corporate tax as it is; so if the corporate tax was eliminated, nothing would change for them."
"If corporations were exempt from paying taxes, all it would mean is that the CEO's, administrators, and stockholders would get more profit. It wouldn't change consumer prices one bit."
Am I the only that sees the humor in this? So, as I read this, if the tax is eliminated, nothing will change. But, from this "no change" they will make more profit. I think I understand..not.

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