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Old 11-30-2010, 07:35 PM
 
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A friend sent me this article. It talks about the elimination of the corporate income tax as a solution to unemployment. The writer estimates the corporate taxes to bring in $300 billion a year; but that figure is overshadowed by the governmental expenses of corporate subsidies , bailouts and price supports, estimated to be $350 billion/year.(Gov. Subsidies have reportedly doubled in the last 20 years to 1,800 programs!) Eliminating corporate income taxes and the government's financial support of corporations would theoretically, result in a savings of about $50 billion/yr and businesses would put this money into expansion and jobs resulting in a timely end to unemployment.

Sounds good to me. Any thoughts?

MOMENT OF CLARITY: Corporate Welfare To Work
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Old 11-30-2010, 07:39 PM
 
Location: Orlando
8,233 posts, read 11,269,114 times
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but are you refering to bailouts that get paid back? that woul;d not be good to keep in the figures if so... otherwise it is an interesting idea, but it wouldn't help those that probably nered it the most but those that need it the least. the big companies get richer. and based on trends now they hoard instead of spending.


Who knows maybe it would be a good thing.
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Old 11-30-2010, 07:43 PM
 
Location: Sierra Vista, AZ
16,133 posts, read 20,814,828 times
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We could use all of these unemployed to work inn the fields after they lose their homes. That will take care of the illegals too. By then wages will be down to the level of North Korean Slave Labor so we will be competitive in the third world
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Old 11-30-2010, 07:52 PM
 
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This is just a big myth.

In the long term, reducing taxes does nothing to effect the employment level.

It's all money.......Macro-economically, whether it's private individuals doing the spending or the government doing the spending it just doesn't matter.

The EU has a much much higher rates of total taxation and their employment level is the same as here.

Corporate interests want you to lower their tax rates so they can make more profits and pay their owners and top officers Billions.

The gap between rich and poor is the highest in our Nation's history and it's myths like these that are part of the problem.
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Old 11-30-2010, 07:54 PM
 
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I think we should drop ALL tax on business and elimination of subsidies.

Taxes that business's pay are hidden taxes on consumers in the cost of the product. Move them to a national sales tax or whatever and let the consumer really see how much the government is taking from them.
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Old 11-30-2010, 07:56 PM
 
39,450 posts, read 40,753,065 times
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Quote:
Originally Posted by padcrasher View Post
Corporate interests want you to lower their tax rates so they can make more profits and pay their owners and top officers Billions.

Tax to a business is just another expense they pass onto the consumer. In effect they are just tax collectors.
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Old 11-30-2010, 08:04 PM
 
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Quote:
Originally Posted by thecoalman View Post
Tax to a business is just another expense they pass onto the consumer. In effect they are just tax collectors.
Right. So what's the problem? The more "tax" that is passed along to the consumer the less "tax" is needed from the income tax payer.
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Old 11-30-2010, 08:10 PM
 
39,450 posts, read 40,753,065 times
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Quote:
Originally Posted by padcrasher View Post
Right. So what's the problem? The more "tax" that is passed along to the consumer the less "tax" is needed from the income tax payer.

The problem is they never see these taxes, do you think there might be a little bit of outrage if they see a 20% or 30% sales tax on everything they buy even if the total cost was still the same?
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Old 11-30-2010, 08:11 PM
 
Location: Texas
14,078 posts, read 17,654,955 times
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Quote:
Originally Posted by GottaBMe View Post
A friend sent me this article. It talks about the elimination of the corporate income tax as a solution to unemployment. The writer estimates the corporate taxes to bring in $300 billion a year; but that figure is overshadowed by the governmental expenses of corporate subsidies , bailouts and price supports, estimated to be $350 billion/year.(Gov. Subsidies have reportedly doubled in the last 20 years to 1,800 programs!) Eliminating corporate income taxes and the government's financial support of corporations would theoretically, result in a savings of about $50 billion/yr and businesses would put this money into expansion and jobs resulting in a timely end to unemployment.

Sounds good to me. Any thoughts?

MOMENT OF CLARITY: Corporate Welfare To Work
So long as the consumers don't have jobs, they won't have money to spend. Without that spending, there is no increased demand. Without increased demand, there is no reason to expand production and hire more workers. All corporations would do with that money is pay themselves higher bonuses or invest it. There's nothing else they can do with it.

If you REALLY want to spur job growth, put money in the workers pockets. Put it in at the bottom, not the top. They'll spend it, which will increase demand and corporations will expand production and hiring to meet that demand. Couple that with tax and trade policies which remove the incentives to off shore that new production and the recession is over.

Trickle down economics is snake oil. Always has been; always will be.
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Old 11-30-2010, 08:21 PM
 
10,963 posts, read 8,049,330 times
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Quote:
Originally Posted by GottaBMe View Post
A friend sent me this article. It talks about the elimination of the corporate income tax as a solution to unemployment. The writer estimates the corporate taxes to bring in $300 billion a year; but that figure is overshadowed by the governmental expenses of corporate subsidies , bailouts and price supports, estimated to be $350 billion/year.(Gov. Subsidies have reportedly doubled in the last 20 years to 1,800 programs!) Eliminating corporate income taxes and the government's financial support of corporations would theoretically, result in a savings of about $50 billion/yr and businesses would put this money into expansion and jobs resulting in a timely end to unemployment.

Sounds good to me. Any thoughts?

MOMENT OF CLARITY: Corporate Welfare To Work
Corporate profits are at RECORD HIGHS.

People like you sound a like a girl who thinks if she puts out more she can get her boyfiriend back.

The reality is that corporations are NO LONGER INVESTING IN AMERICA.

Here is a list of past presidential two term administrations and the rate that real private investment increased on an average yearly basis for their terms:

Eisenhower 1953 - 1960
Average Yearly Increase in Real Fixed Private Investment Per Year: 3.575%

Kennedy-Johnson 1961 - 19i68
Average Yearly Increase in Real Fixed Private Investment Per Year: 5.9000%

Nixon-Ford 1969-1976
Average Yearly Increase in Real Fixed Private Investment Per Year: 3.2125%

Reagan 1981 - 1988
Average Yearly Increase in Real Fixed Private Investment Per Year: 3.7125%

Clinton 1993 - 2000
Average Yearly Increase in Real Fixed Private Investment Per Year: 8.775%

Bush Jr. 2001 - 2008
Average Yearly Increase in Real Fixed Private Investment Per Year: 0.625%

That's right boys and girls the average annual increase in real private fixed investment during the Bush Adiministration was LESS THAN 1% a year.

The Bush Tax cuts DID NOT INCREASE the amount of real fixed private investment by any significant measure. IT SIMPLY ALLOWED INVESTORS AND CORPORATIONS TO INVEST THEIR MONEY IN OTHER COUNTRIES

Also during the Reagan Adminstration real fixed private investment did NOT increase as fast as it did during the Kennedy-Johnson or Clintion Adminstration despite the fact that the Reagan Administration instituted THE BIGGEST TAX CUT in American history.

The things that drive real fixed private investment are significant population growth, entry into new markets and technical and scientific innovation. None of which is happening in the United State now.


When will Conservatives get it? Tax breaks are like sugar highs they make spike the economy for a one or two year period but they DO NOT PROVIDE THE NECESSARY CATALYST FOR LONG TERM GROWTH.

All statistical information derived from data from the U.S. Bureau of Economic Analysis.

Last edited by JazzyTallGuy; 11-30-2010 at 08:36 PM..
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