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And guess what result? Corporations decrease dividend payments and management gains even greater autonomy from shareholders than it already has.
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Originally Posted by TheCityTheBridge
Oh yeah, and you invite high net worth individuals to relocate on paper to untaxed jurisdictions, from where those capital gains and dividend taxes are unreached.
Under our current system, people do indeed relocate from high state-tax states (e.g., NY, IL, CA) to low-tax or no-tax states (e.g., NV, TN, FL, TX, AK, SD, WA, WY). Some people relocate on paper only. They are frequently caught.
If you're referring to people relocating from the USA to other places -- well, that already happens. Some people renounce their US citizenship and relocate to foreign countries. France has seen this in spades.
And that is their choice. If they wish to emigrate and become citizens of, say Aruba or Singapore or wherever, they are free to do so.
I'm not sure you actually understand what value creation is if you think a tax department is akin to digging and then refilling in a hole. It's just an idiotic level of over simplification.
Optimization of resources creates value. Work, through creative tax planning, creates sustainable competitive advantage. The tax department is more like the project lead, who planned and optimized the construction project so resources could be deployed elsewhere, faster than they are comparable to digging and filling a hole. Anyone who actually knows what creating value is, understands how important optimization and opportunity cost is.
Ensuring cash is optimized and more is left to fund capital investment directly effects shareholder earnings currently and the future availability of more funding. You've clearly not been involved in the c suite of Fortune 500 companies. CEOs seem to value tax more than ditch diggers, but I'll take your word for it.
A dollar saved is worth more than a dollar earned, because of the income tax.
Last edited by Thatsright19; 10-05-2017 at 10:26 AM..
Under our current system, people do indeed relocate from high state-tax states (e.g., NY, IL, CA) to low-tax or no-tax states (e.g., NV, TN, FL, TX, AK, SD, WA, WY). Some people relocate on paper only. They are frequently caught.
If you're referring to people relocating from the USA to other places -- well, that already happens. Some people renounce their US citizenship and relocate to foreign countries. France has seen this in spades.
And that is their choice. If they wish to emigrate and become citizens of, say Aruba or Singapore or wherever, they are free to do so.
If you think that eliminating the corporate income tax and increasing high bracket income tax would not turn relocation into a rocketship, you are crazy. Relocation, however, would only be the icing on the cake. Unless you raise the capital gains tax, you will not be able to replace corporate income taxes with increased income tax on high earners. If you raise the capital gains tax to cover the corporate income tax, then paper relocation becomes table stakes for the capital class.
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Originally Posted by Thatsright19
I know the salt deduction is a federal tax deduction. *rolls eyes*.
The politicians might just want to tone down the "we have the most to lose" speech, because that just means they tax their citizens the hardest at the state level. If the congressman wanted to "work for his constituents", he should lower their state tax burden instead of keeping it the same and worrying about shifting the burden of their high state taxes to other states in the country through what amounts to a federal subsidy. In other words, they don't actually give 2 ****s about the high tax burden in their state where they can control it, they want to focus on the "other" boogie man going after their poor citizens.
Members of Congress have no control over state and local taxes. Members of Congress are part of the federal government.
If you think that eliminating the corporate income tax and increasing high bracket income tax would not turn relocation into a rocketship, you are crazy. Relocation, however, would only be the icing on the cake. Unless you raise the capital gains tax, you will not be able to replace corporate income taxes with increased income tax on high earners. If you raise the capital gains tax to cover the corporate income tax, then paper relocation becomes table stakes for the capital class.
Members of Congress have no control over state and local taxes. Members of Congress are part of the federal government.
Perhaps they should be on the phone with their states governor then rather than out in the media scoring fake brownie points.
The complaining just didn't sit well with me. That's all I'm saying.
Perhaps they should be on the phone with their states governor then rather than out in the media scoring fake brownie points.
The complaining just didn't sit well with me. That's all I'm saying.
Congress' job is not State policy. It is federal policy. It's more appropriate for a member of Congress to speak about federal tax policy than it is for a member of Congress to harangue State & local officials over State & local policy.
It may come as a surprise, but that is not what Buffett said. What he said was that his tax rates are lower than his secretary's, because she pays income tax and he (mostly) doesn't. She pays FICA, but he has no earned income so doesn't pay anything. His point was that wealthy people are skating on the backs of the middle class.
No, he never asserted that "wealthy people are skating on the backs of the middle class." He points out the absurdity of our complex tax system and the illogical and unintended outcomes it generates.
Before we aggressively shake down those unworthy worms in the lower and middle class to make it fair to the sainted ever put-upon rich, we should remember that the evil 50% does pay payroll tax, sales tax, property tax if they own their home, etc etc etc. So to say that the unworthy bottom pays no taxes is simply not true.
Is there something in that post that led to believe that total taxes was being discussed rather than income taxes?
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