[GunGeek]

Is he out of his mind?

Look, I'd LOVE to see the corp rate go to 20%, but you don't do it in one big move like that...because if you get it wrong, you can bankrupt the US inside of 3 years. I thought this was a "conservative" president.

Do it 5% at a time. And if this is REALLY about what's best for America, then do it for small corporations first. 10% for small corporations, 5% for medium sized corporations, and 2% for the big billion dollar corporations.

Ride with that for about 2 years and see how it goes.

But my fear is, this is going to be 15% for the largest corporations in America...which will just bankrupt America overnight.

 

[csmkersh]

The U.S. is already bankrupt financially. Have you ever looked at the national debt? And if grows every year because to the deficit. Government spends more than it takes in in taxes and has as long as I can remember.

 

[William R. Moore]

I can't recall who it was long ago, might have been Peanuts, but someone in DC politics brought up the concept of zero based budgeting. That is, instead of the various agencies, departments and assorted moochers submitting a budget that starts with an assumed 6% increase, they have to justify every penny of their budget request.

That sounded like an outstanding idea to me. I can count on my fingers the times I got a 6% raise over nearly 50 working years.

 

[stand watie]

William R. Moore,

Personally, I would decrease EVERY department, agency & office "across the board" by 10% this year & let the supervisor decide what to cut. = I would let the WASTRELS howl, complain & weep, inasmuch as the GAO says that about 25% of taxpayer's funds are lost to FRAUD, WASTE & just plain THEFT.

In the next year, decrease funding by another 10% & keep decreasing funding until the taxpayer is protected from over-taxation & fraud/waste/theft is decreased as much as possible.

yours, sw

 

[M118LR]

Do it 5% at a time. And if this is REALLY about what's best for America, then do it for small corporations first. 10% for small corporations, 5% for medium sized corporations, and 2% for the big billion dollar corporations.

Ride with that for about 2 years and see how it goes.

But my fear is, this is going to be 15% for the largest corporations in America...which will just bankrupt America overnight.

Small business is still @ 25%, Big Trillion Dollar corporations don't even bother to bring profits to America's Tax Agents. So if a 20% tax rate brings any of the Major Corporations profits back into the American Tax Base, it's a win-win situation. JMHO.

 

[CaptainGyro]

I would like to gently remind the commenters on this thread who pays corporate taxes: You.

A corporate tax is just another item of overhead, and like all overhead is included in the pricing of the product. Just like physical plant, power, raw materials, labor, shipping, fuel, regulatory compliance, and any number of other expenses, taxes are just another cost of doing business. If they can't be passed on to the consumer by being rolled into the price of the product, the company loses money and eventually stops producing that product, with the resulting loss of jobs.

My Dad was a corporate tax attorney for forty years, and a president of the Tax Executives Institute. He finished out his career at a public utility. A tax increase merely meant that the corporation went before the utilities commission and requested a rate increase, which was usually granted. The consumers ended up paying the tax that they felt so good about imposing on the corporation.

It may make us feel good, in a crude, Bernie Sanders populist sort of way, to think we're "sticking it to the man" when corporations are forced to pay income taxes. But, like most Populist ideas, it's a pipe dream. Punishing production has a price, and we are the ones who pay it.

Right now Amazon is very publicly searching for a city to host its second headquarters. The competition to win this plumb will be intense, and it is guaranteed that the winning bid will include very attractive tax breaks for Amazon. So why would a city and state agree to forego taxing the fattest of the fat cats? Because the policy makers understand that the award will mean hundreds, possibly thousands, of jobs for their citizens and that the income taxes those citizens pay will eclipse whatever tax they could have squeezed out of Amazon. And those workers will turn around and spend those dollars, which will be taxed every time they change hands throughout the economy. Sales taxes, property taxes, income taxes: receipts from all of these will go up because Amazon is paying good wages to a lot of citizens.

So, you want Exxon to pay taxes? You'll pay for it at the pump. You think Tyson Foods should pay tax? You'll pay it before you throw your chicken on the grill. How about General Motors, Ford, Chrysler, Honda, Toyota, Nissan and Mazda? It'll be included on the sticker of your (or your kids') next car. Taxing corporations may make us feel better on a visceral level, but usually ends up hurting us in the long run.

 

[Diamondback]

Hence the argument about a tax rate low enough that the cost of payment is less than the cost of non-payment.

Anytime C(np)<C(p), (non-pay) wins the dollars-and-cents argument.

 

[stand watie]

CaptainGyro,

SPOT ON. = Corporations are NOT tax-payers; they are tax-COLLECTORS.

yours, sw

 

[GunGeek]

Small business is still @ 25%, Big Trillion Dollar corporations don't even bother to bring profits to America's Tax Agents. So if a 20% tax rate brings any of the Major Corporations profits back into the American Tax Base, it's a win-win situation. JMHO.

While that is an exaggeration, it does drive home a very important point!!